US stock futures slip after Powell boost — Dow, S&P 500, Nasdaq futures fall as traders brace for inflation and jobs test
US stock market futures slipped on Monday, with the Dow Jones, S&P 500, and Nasdaq edging lower after last week’s explosive rally to record highs. The pullback signals a cautious mood across Wall Street as traders weigh whether Jerome Powell’s dovish Jackson Hole remarks marked the start of a true policy shift or a temporary spark.
With Nvidia set to deliver earnings that could define the AI trade, and Tesla and Apple also in focus, investors are bracing for a pivotal week that may determine if the rally has real staying power.
- Dow Jones Industrial Average futures: Down around 120 points, easing after last week’s 800+ point surge.
- S&P 500 futures: Lower by roughly 0.2%, reflecting investor caution before key earnings and inflation data.
- Nasdaq-100 futures: Slipped about 0.3%, as traders trimmed positions in big tech ahead of Nvidia’s results.
What is weighing on market sentiment today?
Friday’s gains were extraordinary—Wall Street celebrated Powell’s signal that the Fed is ready to respond to slowing labor-market momentum. But the pullback this morning suggests traders are shifting their attention to what comes next.
- Economic data in focus: This week brings PCE inflation numbers (the Fed’s preferred gauge) and nonfarm payrolls, both of which could determine how confident policymakers feel about easing rates.
- Corporate developments: Nvidia reports earnings on Wednesday, and expectations are sky-high. Given its role as the bellwether for AI enthusiasm, even a small disappointment could jolt sentiment across the Nasdaq.
- M&A activity: Keurig Dr Pepper is under pressure after unveiling plans for an $18.4 billion acquisition of JDE Peet’s along with a corporate split by early 2026. Investors are cautious about the balance-sheet strain and execution risk.
Are stocks still on track for September gains?
The bigger question investors are asking is whether Friday’s surge was the start of a broader rally or a temporary spike. Futures suggest caution, but not panic.
- The VIX volatility index has dropped sharply, signaling that markets don’t expect extreme swings in the near term.
- Rate-cut bets remain intact, with futures markets still pricing in a high probability of a September 25 basis-point cut.
- However, traders know that one hotter-than-expected jobs report could upend those expectations, making this week’s data releases critical.
Why are Nvidia’s earnings such a big deal?
No single stock carries as much weight this week as Nvidia (NVDA). Scheduled to report on Wednesday, the chipmaker’s earnings are widely seen as a litmus test for the AI-driven market boom.
Wall Street analysts expect another blockbuster quarter, but the stakes are high: Nvidia now commands a valuation that assumes continued explosive demand for AI chips.
If results or guidance disappoint, the ripple effects could spread well beyond semiconductors, hitting mega-cap tech and the broader S&P 500. On the other hand, a strong beat could reinforce investor confidence in AI as the core growth engine of this market cycle.
- Center of attention ahead of earnings midweek.
- Traders are cautious, with modest pullbacks after last week’s record-setting rally.
- Market expects another blowout quarter, but valuation risks are high.
- Futures indicating slight weakness after strong recent gains.
- Investors locking in profits while watching retail and consumer spending data.
- Cloud growth expectations remain supportive in the background.
- Fluctuating in pre-market trade, with pressure from auto demand concerns.
- EV competition and pricing strategies continue to weigh on sentiment.
- Any surprise in deliveries or updates could swing momentum sharply.
What investors are watching beyond Nvidia
While Nvidia dominates headlines, several other catalysts are shaping the week ahead:
- Economic data: Friday’s release of the Fed’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) price index, will be critical. A softer reading could cement expectations for a September rate cut, while a surprise uptick would challenge Powell’s dovish tone.
- Job market signals: Weekly jobless claims and consumer confidence reports will also be closely scrutinized for cracks in the labor market or shifts in household spending.
- Housing and manufacturing: Data on pending home sales and regional manufacturing surveys will provide further clues on whether the Fed’s tightening has meaningfully cooled the economy.
Each of these indicators feeds into the larger question dominating Wall Street: has the Fed done enough to tame inflation without derailing growth?
What’s driving US stock futures today?
Fed influence
Powell’s dovish tone boosted expectations for a September rate cut, fueling last week’s rally. Futures are now pausing as investors wait for confirmation.
Nvidia spotlight
All eyes are on Nvidia (NVDA) earnings this week. A strong report could reinforce the AI-driven market, while a miss may weigh on tech and the S&P 500.
Global markets
Asian stocks are higher on hopes of U.S. rate cuts, while Europe remains cautious. U.S. futures are muted as traders seek proof of lasting policy changes.
How are global markets reacting to Powell’s shift?
Outside the U.S., markets are moving in different directions. Asian equities opened the week on a positive note, lifted by hopes that U.S. rate cuts could fuel global growth. In contrast, European investors remain cautious, with bond markets still signaling slower-than-expected progress on inflation.
This split highlights why U.S. futures are holding steady instead of extending Friday’s surge. Investors want proof that Powell’s softer tone marks the beginning of a real policy shift — not just a one-day soundbite.
- Slight dip in futures after strong tech-led rally.
- Focus remains on upcoming product cycle and iPhone demand outlook.
- Holding near record territory despite muted moves today.
- Trading steady, holding gains tied to AI optimism.
- Futures show resilience as enterprise demand and cloud growth remain central themes.
- Pausing after recent strength, modestly lower in futures.
- Digital ad recovery and AI investment remain long-term drivers.
- Futures slightly down, reflecting broad tech pullback.
- Market eyes ad spending trends and AI monetization progress.
- Futures leaning higher on firmer oil prices.
- Sector acting as a stabilizer while tech cools.
What this means for everyday investors
For retail traders and long-term investors alike, the message is clear: volatility isn’t going away. The Powell rally has reset expectations for interest rates, but markets now hinge on Nvidia’s earnings and incoming economic data.
- If Nvidia delivers another “AI shockwave,” tech could lead the market higher once again.
- If inflation data shows further cooling, it could accelerate bets on Fed cuts, adding fuel to equities.
- Conversely, any disappointment on either front could trigger a sharp pullback after the recent run-up.
For now, patience may be the smartest strategy. The market’s next big move likely won’t come until midweek—when Nvidia reports and the economic calendar heats up.
FAQs:
Q1: Why are Nvidia earnings so important for the stock market today?
Nvidia earnings are a key test for the AI boom driving Wall Street’s rally.
Q2: How did Jerome Powell impact Dow, S&P 500, and Nasdaq futures?
Powell’s dovish tone boosted stocks, but futures now show caution.