Nasdaq, S&P 500 Futures Indicate Cautious Open as Nvidia's Earnings Approach

U.S. stocks are poised to kick off the week with optimism, extending the previous week's upward trend. The tech sector may experience some fluctuations due to recent leadership changes at OpenAI, which could have repercussions for Microsoft Corp. and other tech giants in the AI field. Investors are particularly looking forward to Nvidia Corp.'s earnings, which are expected to be released after the market closes on Tuesday, potentially boosting the tech sector and the overall market.

Energy stocks may see benefits from oil's robust recovery. Meanwhile, bond yields are largely flat to mildly higher, and traders are keeping an eye on the day's Treasury auctions. However, trading volumes are likely to be lower than usual due to the upcoming holiday, which might diminish the significance of market movements.

Review of Last Week's Performance

Markets were buoyed last week by signs of moderating inflation and slower growth, with major indices like the Nasdaq Composite and the S&P 500 reaching their highest levels in several months. Despite a mixed reaction to several key earnings reports, the markets largely maintained an upward momentum.

Considering the S&P 500 Index is currently not far from its historical high set in early January 2022, LPL Financial's equity strategist, Jeffrey Buchbinder, believes that a new record high could be on the horizon, citing technical patterns and seasonal trends in stock performance.

Early Market Indicators

In the premarket session, ETFs tracking major indexes like the SPDR S&P 500 and the Invesco QQQ showed slight gains. These early movements hint at the market's directionality ahead of the opening bell.

Key Economic Data This Week

The economic calendar for the week is relatively light but does include potentially market-moving data releases such as the Conference Board's leading economic index, durable goods orders, existing home sales, and weekly jobless claims. The minutes from the latest Federal Reserve meeting will also be under scrutiny.

On a global scale, most Asian markets edged up, while European markets displayed a mix of gains and losses in the morning session. Commodity markets saw a rise in crude oil prices, and cryptocurrencies like Bitcoin experienced strength after Argentine elections hinted at a crypto-friendly future.

Nasdaq, Futures, Earnings