US stock futures showed a mixed performance as investors prepared for a packed week. The S&P 500 E-minis were up by 0.14%, Nasdaq 100 E-minis increased by 0.19%, while Dow E-minis rose by 0.12%. This follows a volatile period in February where questions arose about the profitability of massive AI investments by technology giants, coupled with tariff uncertainties. Despite these jitters, sentiment towards AI stocks improved, leading the tech-heavy Nasdaq to close more than 1% higher on Tuesday.
The week is highlighted by several significant events, with Nvidia's (NVDA) earnings report on Wednesday being a major focal point for the AI industry and chip demand. The company is expected to report earnings per share of $1.52 on revenue of $65.56 billion, a substantial increase from the previous year. Nvidia's performance is seen as a test for the AI trade, especially given the mixed results from other tech giants like Meta and Google, which re-sparked concerns about increased spending. Analysts are closely watching for evidence that Nvidia's profits are growing due to the $630 billion capital spending budget of Big Tech for 2026.
Beyond corporate earnings, the week is also crucial for economic data and monetary policy. The Federal Reserve's preferred inflation gauge, the PCE price index, will be released on Wednesday, providing insights for the central bank's next policy meeting. Economists and central bankers will also gather at the Jackson Hole Symposium. A hotter-than-expected inflation reading could reignite calls for a September interest rate hike, while some economists believe pricing pressures have improved. Several Fed officials are scheduled to speak, and their comments will be closely scrutinized for clues on the future monetary policy path.
