Investing.com — U.S. stock futures traded in a mixed fashion Monday, as investors awaited key earnings from chipmaker Nvidia (NASDAQ:) as well as comments from a series of Fed officials.
By 06:00 ET (11:00 GMT), the contract was down 110 points, or 0.3%, while traded 5 points, or 0.1%, higher and gained 85 points, or 0.4%.
The three main indices retreated last week, falling back from the recent highs seen in the wake of Donald Trump’s election win after Fed chief Jerome Powell warned that the US central bank was not “in a hurry” to cut interest rates further.
S&P pullback started?
The pullback in the broad-based may have already started, with the index potentially retreating by 5%-10%, according to RBC Capital Markets strategists.
The investment bank cites several factors as to why the S&P 500 could retreat, including stretched valuations, positioning in futures markets, and a recent history of bullish sentiment. These elements have historically preceded similar market downturns since late 2022.
Nvidia earnings in focus
Nvidia’s earnings will be in the spotlight this week, with the chipmaker, a bellwether for this year’s AI craze, due to report third quarter results after the close on Wednesday.
The results could well be a gauge for investors’ appetite for tech stocks, the AI trade and sentiment for equities broadly, after a post-election market rally stalled.
Nvidia’s chips are seen as the gold standard in the AI-space and its shares have risen around 200% this year, overtaking Apple (NASDAQ:) to become the world’s largest company by market capitalization.
There are also results due this week from the likes of Walmart (NYSE:) and Lowe’s (NYSE:) Companies, which will give fresh insights into the strength of consumer spending.
So far 93% of S&P 500 companies have reported results, and three-quarters of them have reported a positive EPS surprise and 61% have reported a positive revenue surprise, according to data from FactSet.
Tesla soars on self-driving hopes
Elsewhere, Tesla (NASDAQ:) stock soared 8% in premarket trade on Monday following reports from Bloomberg that the incoming Trump administration will establish a federal framework for fully self-driving vehicles and make it a top priority for the Department of Transportation.
Spirit Airlines (NYSE:) stock rose 2.8% after the budget carrier filed for bankruptcy protection after years of mounting losses, stating that it has reached a prearranged deal with its bondholders to help…
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