Dow Jones futures open Sunday evening for a week with Nvidia's earnings taking center stage, several cybersecurity reports and Fed Chairman Kevin Warsh's first Jackson Hole speech. The Dow, S&P 500 and Nasdaq all slipped last week but clawed back some ground Friday, leaving the rally bent but not broken.
Dow Jones futures, along with S&P 500 and Nasdaq-100 futures, open at 6 p.m. ET Sunday, setting up a week that could decide whether the stock market rally holds. Nvidia's earnings and guidance Wednesday night stand as the biggest single catalyst for the AI trade, while Warsh's debut Jackson Hole address Friday will draw scrutiny for any clue on whether a rate hike is likely at the Fed's Sept. 15-16 meeting.
Indexes Slip, Then Bounce
All the key indexes fell below their 21-day moving averages on Thursday, and the Nasdaq closed below its Aug. 4 follow-through day low, a bearish signal that the rally will ultimately fail. But the indexes rose modestly Friday, with all but the Nasdaq regaining their 21-day lines.
For the week, the Dow Jones Industrial Average fell 0.85%, the S&P 500 lost 1.4% and the Nasdaq composite tumbled 2.05%. The small-cap Russell 2000 declined 1.65%, while the Nasdaq-100 fell below its 50-day line, down 2.45% for the week.
Nvidia Leads a Loaded Earnings Slate
Nvidia's report will be crucial for the AI ecosystem. The chipmaker has told customers that servers built with its latest AI chips will cost more than 15% more, according to multiple reports Saturday. Marvell Technology and data storage leader Everpure are also reporting as AI hardware plays.
CrowdStrike, Okta, Rubrik and SentinelOne are all reporting this week, along with Salesforce and Workday. Nvidia, Marvell, CrowdStrike, Rubrik, Okta, SentinelOne and Salesforce are all sitting near buy points heading into their reports.
Tariffs and Yields Add Pressure
U.S.-Canada trade talks collapsed, and new 50% tariffs on $20 billion worth of Canadian goods took effect Saturday. According to Investor's Business Daily: Canadian Prime Minister Mark Carney vowed to "match those tariffs dollar for dollar." A deal had appeared likely earlier in the week that would have avoided the tariffs.
The 10-year Treasury yield rose four basis points to 4.74% last week, having matched a 19-month high of 4.75% intraday Tuesday before the Treasury's bond buyback plans pulled yields back. Warsh doesn't typically give forward guidance, but investors will still watch his remarks closely.
Nvidia and CrowdStrike's earnings, together with Warsh's speech, could decide whether tech and software names flash buy or sell signals in the days ahead.
Source: Investor's Business Daily
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