U.S. Stock Futures Mixed Amid Anticipation of Nvidia's Earnings

(Reuters) – U.S. stock futures were mixed on Monday as investors awaited key corporate results, particularly from Nvidia (NASDAQ:NVDA), following significant declines on Wall Street the previous week.

Rising expectations that the Federal Reserve will slow its rate cuts and uncertainty over U.S. President-elect Donald Trump's cabinet appointments saw indexes slump on Friday.

The S&P 500 and Nasdaq pulled back from record highs, experiencing their worst weekly losses in over two months.

Results from AI-chip giant Nvidia, reporting third-quarter earnings on Wednesday, are critical as investors evaluate if the AI-driven market optimism can sustain.

Nvidia fell 2.7% in premarket trading, with forecast revenue jumping more than 80% to $33 billion and expected net income of $18.4 billion.

"Given that its recent earnings 'beats' have dwindled, this report must exceed estimates comfortably, especially with broader valuations looking lofty and bond yields rising again," said Marc Ostwald, chief economist at ADM Investor Services International.

Other megacaps rose, with Nasdaq 100 futures gaining ground after five consecutive sessions of decline. Alphabet (NASDAQ:GOOGL) rose 0.3%, Amazon.com (NASDAQ:AMZN) gained 0.8%, and Tesla (NASDAQ:TSLA) soared 8.1%.

Earnings from major retailers such as Walmart (NYSE:WMT), Lowe's Companies (NYSE:LOW), and Target (NYSE:TGT) will also be closely monitored to gauge U.S. consumer strength as the holiday shopping season approaches.

At 5:35 a.m. ET, Dow E-minis were down 82 points (0.19%), S&P 500 E-minis were up 4.25 points (0.07%), and Nasdaq 100 E-minis were up 84 points (0.41%).

Stock indexes have retraced some gains made after Trump’s decisive election victory, as focus shifted to potential inflationary impacts of his policies and the Federal Reserve's interest rate outlook.

Chicago Fed President Austan Goolsbee is expected to speak today, with several central bank officials scheduled this week. Their comments will be scrutinized after Chair Jerome Powell indicated no hurry to cut rates.

Traders are pricing in a 38% chance of the Fed maintaining its current rates in December, per CME FedWatch.

Despite recent fluctuations, Wall Street remains in a strong position heading into year-end, with the benchmark index gaining nearly 3% in November and 23% year-to-date, driven by solid economic data and upbeat earnings.