Dow Jones futures, along with S&P 500 and Nasdaq 100 futures, showed positive movement ahead of Tuesday’s market opening.
Nvidia (NVDA) faced a significant drop of 3.1% on Monday, falling below its 50-day moving average—a critical support level to watch. If the stock rebounds from this point, it could indicate positive short-term prospects. However, a continued decline could signal further losses. Nvidia’s earnings report, scheduled for release on Wednesday after market close, will be key. Investors will focus on the company’s outlook, especially regarding the performance of its AI-focused Blackwell chip. Any signs of slower sales for Blackwell could negatively impact Nvidia’s stock.
Palantir Technologies (PLTR) also experienced a rough session, dropping 10.5%, continuing a four-day losing streak. The stock is now down 28% from its 52-week high.
Tariffs, Inflation, and Economic Data in Focus
During a press conference with French President Emmanuel Macron on Monday, former President Donald Trump reaffirmed that tariffs on Canada and Mexico are “going forward on time, on schedule.” These tariffs, which are set to begin on March 4, are expected to impact markets in the coming weeks.
The week’s key economic data will come from the Commerce Department’s report on personal income and outlays, scheduled for Friday. Investors will closely watch the inflation data, particularly the Federal Reserve’s core inflation reading. Progress on disinflation remains a priority for Wall Street, as it could give the Fed more flexibility in handling any short-term price increases triggered by the tariffs.
In addition to Nvidia’s earnings, other companies in the artificial intelligence sector will report this week, including Salesforce (CRM), Snowflake (SNOW), and C3.ai (AI). Retail earnings reports are also in focus, with Home Depot (HD) and Lowe’s (LOW) leading the late-season earnings season.
Market Overview: Oil Prices and Treasury Yields
On Monday, the Dow Jones Industrial Average rose by 0.1%, while the S&P 500 dropped by 0.5%, and the Nasdaq fell 1.2%.
Ahead of Tuesday’s open, Dow Jones futures were up by 0.3%, S&P 500 futures rose by 0.2%, and Nasdaq 100 futures gained 0.1%. However, overnight movements in futures may not always reflect the actual market trends when the trading session begins.
U.S. Treasury yields decreased slightly, with the 10-year yield falling to 4.4%. Meanwhile, oil prices increased, with West Texas Intermediate futures settling at approximately $70.80 per barrel.
What Investors Should Focus On Now
The stock market remains in a critical phase. Investors are advised to follow The Big Picture column for up-to-date insights on market conditions. The “IBD Live” team discussed current trading trends during Monday’s session, offering further guidance.
Given the market volatility, risk management is crucial. Investors should be mindful of stocks that are deviating from their expected performance and sell any that trigger sell signals.
For those seeking growth opportunities, the IBD MarketSurge’s “Breaking Out Today” list highlights stocks showing strong momentum, while the “Near Pivot” list identifies stocks nearing buy points.
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