U.S. stock futures edged higher on Monday as investors weighed the potential for a September interest rate cut by the Federal Reserve. The market’s focus also shifted to the upcoming earnings report from Nvidia Corporation, a key player in the semiconductor industry.
Expectations for a rate cut gained momentum after recent comments from Federal Reserve officials suggested that a pause in interest rate hikes might be on the horizon. This sentiment was further reinforced by the latest consumer price index (CPI) data, which showed signs of moderating inflation.
However, investors remained cautious ahead of Nvidia’s earnings report, due out later this week. The tech giant has been a major driver of the market’s rally, fueled by the growing demand for artificial intelligence and data center solutions. Investors will be closely watching Nvidia’s results for clues about the broader health of the tech sector.
In addition to Nvidia’s earnings, other economic indicators, such as the personal consumption expenditure (PCE) index, will also be closely monitored. The PCE index is the Federal Reserve’s preferred measure of inflation, and its release could provide further insights into the central bank’s monetary policy outlook.
Overall, the market remains optimistic about the prospects for a rate cut in September, but the focus on Nvidia’s earnings and other economic data points suggests that volatility could persist in the coming days.