Staff Reporter
US stock futures showed signs of recovery on Sunday night, bouncing back after a challenging week that saw major indexes decline. The Dow Jones Industrial Average recorded its worst weekly drop since October, raising concerns about a potential market pullback amid all-time high levels.
Nasdaq (NQ=F) futures rose approximately 0.4%, while S&P 500 (ES=F) futures also increased by 0.4%. Meanwhile, futures for the Dow (YM=F) saw a modest uptick of 0.3%.
This week’s key highlight will be the January Personal Consumption Expenditure (PCE) index report, scheduled for release on Friday. The PCE index is the Federal Reserve’s preferred gauge for inflation, making it a crucial indicator for investors.
Earnings season is in full swing, and all eyes are on Nvidia (NVDA), set to report after the bell on Wednesday. Wall Street’s expectations are running high, especially after the tech giant faced a turbulent month due to news from DeepSeek that significantly impacted its stock value.
“It’s definitely one of the top things that the markets will be watching this week. Investors are eager to see if the DeepSeek news will have lasting effects on these companies’ profit margins,” said Lale Akoner, global market analyst at eToro.
As Nvidia prepares to release its earnings, investors are particularly interested in updates regarding Blackwell AI chip production and demand.
There are growing concerns about the sustainability of demand for Nvidia’s chips, especially following the rise of DeepSeek in China, which may reduce the need for high-powered processors.
Additionally, competition from custom AI chips developed by Broadcom (AVGO) and other companies is adding to the uncertainty.
Nvidia’s stock took a hit last week, falling 3.2% to close at $134.40, with a notable decline of 4.1% on Friday, pushing it just below the critical 50-day moving average.
This Friday will bring the January report on the Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred measure of inflation. Investors are keen to see how this data may influence future monetary policy.
In addition to Nvidia, earnings reports are also expected this week from major retailers Lowe’s (LOW), Home Depot (HD), and Salesforce (CRM), which could provide insights into consumer spending trends.
On the macroeconomic front, market analysts are anticipating updates on US GDP, the housing market, and consumer confidence, all of which are set to be released this week.
