Dow futures jumped on Monday as oil prices declined, even as Nvidia fell on news of a board investigation into its CEO. Investors now look ahead to inflation data and AI-related earnings this week.
Futures tied to the Dow Jones Industrial Average popped 627 points, or 1.3%, on Monday, boosted by a decline in oil prices. S&P 500 futures rose 0.9%, as did Nasdaq 100 futures.
West Texas Intermediate futures dropped nearly 3% to around $88 per barrel, while Brent slid more than 3% to about $95.
Friday's partial rebound left the Dow behind
Friday's market partially rebounded from Thursday's AI-driven sell-off, with the Nasdaq Composite up 1.09% and the S&P 500 up 0.31%. The Dow, however, lost 237.33 points, or 0.46%.
Broader investor sentiment remained cautious following a batch of stronger-than-expected jobs data. Investors also fear that tighter regulations on data center construction, energy use and development costs could slow the AI infrastructure boom, following the Democrats' strong midterm results.
Nvidia probe weighs on tech
Nvidia's board opened an investigation into CEO Jensen Huang's relationship with a businesswoman whom U.S. intelligence agencies say is a Chinese spy, and Nvidia shares were down 5% in premarket trading.
Liz Ann Sonders of the Schwab Center for Financial Research said the Nasdaq and Nasdaq-100 are oversold, with heavy de-risking by traders. Thursday was the biggest day of retail selling since the Covid pandemic, according to Vanda Research, and Sonders said retail traders have not been buying the dip.
Inflation prints and AI earnings ahead
This week, CoreWeave, Cisco and Applied Materials are all due to report earnings. Investors will use them to judge the outlook for tech and whether the selloff has further to run.
They will also watch the consumer price index on Tuesday and the producer price index on Friday, looking for clues on the Fed's next move.
Source: CNBC
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