Stock futures pause after record rally; Nvidia earnings in focus

U.S. stock futures were slightly lower Monday morning, taking a breather after a powerful record-setting surge. Futures on the Dow Jones, S&P 500, and Nasdaq each fell about 0.2%.

The pause follows a spectacular Friday rally where the Dow jumped over 800 points (1.8%) to close at a record high of 45,631.74. The surge was fueled by Fed Chair Jerome Powell opening the door to a potential interest rate cut as early as September.

Compare Top Forex brokers and start trading and investing with a trusted partner

All attention now turns to Nvidia, which reports its highly anticipated earnings on Wednesday. As the market’s most valuable company, its results are a major litmus test for the AI trade. Analysts expect the chipmaker to post earnings of $1.01 per share on revenue of $46.13 billion.

The week culminates with the critical July PCE inflation report on Friday. Economists forecast core PCE to rise 2.9% from a year ago, which would be the highest reading since February and could influence the Fed’s decision on rate cuts.