Dow futures up 350 points, Nasdaq reverses losses despite Nvidia concerns – Here are the key triggers for the week

Futures on Wall Street, particularly those linked to the Nasdaq, have reversed their earlier losses, and are now trading with gains on Sunday evening local time.

The Nasdaq futures, which were down as much as 150 points after the Nvidia and Jensen Huang news came to light, have reversed all of those losses and are now trading with gains of nearly 200 points. The Dow futures, which were outperforming the Nasdaq when trading resumed, have extended their gains and are now trading 350 points higher.

The S&P 500 futures are trading 50 points higher.

Nasdaq’s futures had earlier declined after Nvidia announced that its board has launched an independent investigation into Co-founder and CEO Jensen Huang’s relationship with an individual, who intelligence agencies fear to be a Chinese spy.

The Nasdaq had seen a small rebound last Friday, led by Nvidia and Micron, which gained 3% and 5% respectively, lending support to the index, after its worst one-day value erosion on record. The Dow Jones had declined on Friday as well. The US had added over 1.6 lakh jobs in October, well above the consensus estimates of 59,000 – 65,000 additions.

What Are The Most Important Triggers This Week For Wall Street?

Two stocks that have been in the line of fire recently, CoreWeave and Nebius Group, also known as Neoclouds, will be reporting their quarterly results on Tuesday and Thursday respectively.

While there are no major results lined up this week apart from these, there is a slew of macro data and speeches from Fed officials that investors will have to parse for the rest of the week ahead.

The most important macro data point this week is the October inflation figures. The Consumer Price Inflation (CPI) figure will be reported on Tuesday, while the Producer Price Inflation (PPI) figures will be reported on Friday.

At least 10 Fed officials are scheduled to speak this week, with some who spoke last week highlighted that more rate hikes may be needed from the central bank to bring inflation down to the Fed’s 2% target.

Two fed officials are scheduled to speak on Monday, including Austan Goolsbee and Thomas Barkin, while four others speak on Tuesday. Thee more officials are slated to speak on Thursday, while San Francisco Fed chief Mary Daly speaks on Friday.

There will be one more jobs report and inflation print that Fed officials will have to go through next month before making their policy announcement on December 18, their last for the year.

Geopolitical developments will continue to be monitored through the week and any breakthrough between the US and Iran could bring some relief to the markets.