US stock futures saw an upward tick Sunday night, recovering from a rough week that saw major indexes slump. The Dow experienced its worst weekly performance since October, raising concerns of a possible pullback from its record-high levels.
Futures Movement
Nasdaq Futures (NQ=F) rose 0.5%
S&P 500 Futures (ES=F) climbed 0.5%
Dow Jones Industrial Average Futures (YM=F) crept up 0.4%
This uptick signals a potential bounce-back after last week’s downward pressure, particularly in high-growth stocks, including the AI sector.
Key Events to Watch This Week
1. Personal Consumption Expenditure (PCE) Report
The January PCE report is scheduled for Friday. As the Federal Reserve’s preferred inflation gauge, the report will be critical in guiding the central bank’s decisions on future rate hikes.
2. Earnings Reports
Earnings continue to roll in, with Nvidia (NVDA) capturing significant attention. The chipmaker is set to release its earnings report Wednesday after the bell. Expectations are high, but concerns have emerged following news from China’s competitor DeepSeek, which caused a dip in Nvidia’s stock price.
In addition to Nvidia, Lowe’s (LOW), Home Depot (HD), and Salesforce (CRM) are also set to report their quarterly results.
3. Macroeconomic Reports
This week will bring important macroeconomic data:
US GDP Report: A key measure of economic growth.
Housing Market Data: Insights into the health of the housing sector.
Consumer Confidence: A measure of consumers’ sentiment toward the economy.
Geopolitical Influences: Trump’s Policy Shifts
Investor sentiment may also be influenced by President Donald Trump’s unpredictable policy moves, especially in areas like tariffs and immigration. Tariff changes have already led to significant market shifts throughout February, but economists are now focusing on the potential impact of immigration policy changes, which may prove just as impactful in the coming weeks.
Morgan Stanley’s Chief US Economist Michael Gapen emphasized that “the macro effects of immigration restriction could be just as consequential” as tariff shifts.
What to Expect from the Week Ahead
The combination of key economic data, high-profile earnings reports, and geopolitical developments will likely define market action this week. With the spotlight on Nvidia’s earnings and broader economic indicators, investors are preparing for potential volatility and seeking signs of stability in the market after the recent pullback.
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