U.S. stock index futures held steady on Sunday evening after Wall Street posted strong gains on Friday, boosted by dovish comments from Federal Reserve Chair Jerome Powell. His remarks signaled the possibility of near-term interest rate cuts, fueling optimism across markets.
The spotlight this week is firmly on earnings from artificial intelligence leader NVIDIA Corporation (NASDAQ: NVDA), which investors see as a key barometer for the fast-growing AI industry.
Futures steadied after Friday’s sharp rebound in Wall Street indexes, which erased much of the prior week’s losses. Markets ramped up bets on a September rate cut, but caution over technology stocks—still fragile after a broad sell-off—kept futures muted.
By 19:17 ET (23:17 GMT), S&P 500 Futures were flat at 6,483.25 points, Nasdaq 100 Futures hovered at 23,572.0 points, and Dow Jones Futures were steady at 45,711.0 points.
Powell’s dovish tilt sparks Wall Street rally
Speaking at the Jackson Hole Symposium, Powell signaled that the Fed could cut rates in September due to rising risks in the labor market. However, he cautioned that inflationary pressures—particularly from President Donald Trump’s trade tariffs—remain a key concern.
Despite his warning, Powell’s comments were far more dovish compared to recent Fed statements, driving markets higher. On Friday, the S&P 500 rose 1.5% to 6,466.91, the Nasdaq Composite jumped 1.9% to 21,496, and the Dow Jones Industrial Average climbed 1.9% to a record 45,631.74.
CME FedWatch data showed traders now pricing in an 82.9% chance of a September rate cut, up sharply from 73.1% just a day earlier.
Nvidia earnings in focus amid AI boom
Nvidia is set to report second-quarter earnings on Wednesday, with investors closely watching results as a key gauge of global AI demand. The chipmaker is expected to deliver another strong quarter, but attention will be on its China sales, which have been pressured by U.S. export restrictions and tighter Chinese regulations on AI chips. Last week, Nvidia was reported to have halted production of its China-specific H20 chip.
The company’s results come at a time of heightened volatility for tech stocks, as investors question whether AI’s profitability can be sustained in the months ahead. Beyond Nvidia, several major companies—including Dell Technologies (NYSE: DELL), Dick’s Sporting Goods (NYSE: DKS), Best Buy (NYSE: BBY), Dollar General (NYSE: DG), and Abercrombie & Fitch (NYSE: ANF)—are also set to release earnings this week.
Additionally, second-quarter GDP data is due, following July’s preliminary report that showed stronger-than-expected U.S. growth.
