U.S. stock index futures showed signs of stabilization on Monday evening following a negative session on Wall Street. Investors retreated from technology stocks ahead of Nvidia’s highly anticipated earnings report.
Concerns about a slowing U.S. economy, coupled with fears of escalating trade tariffs under President Donald Trump, further dampened investor sentiment. On Monday, Trump confirmed that 25% tariffs on Mexico and Canada would go into effect as scheduled next week, adding to market uncertainty.
S&P 500 futures held steady at 6,002.50 points, while Nasdaq 100 futures fell 0.1% to 21,401.0 points. Dow Jones futures rose 0.1% to 43,578.0 points by 18:40 ET (23:40 GMT).
Tech Sector Weakens; Nvidia Earnings in Focus
Technology stocks were a major drag on Wall Street’s performance, with Nvidia (NVDA) continuing to struggle, falling another 3% on Monday. The company is set to report its quarterly earnings after the market close on Wednesday, and investors are eager to see whether Nvidia has maintained its strong performance amid rising demand for artificial intelligence (AI).
Nvidia, a key supplier of AI chips, is seen as a barometer for the tech industry’s AI growth. Despite its strong run over the past two years, the stock has been hit by a recent sell-off as investors locked in gains.
The broader tech sector also faced headwinds from concerns about future investments in AI infrastructure, particularly after China’s release of the DeepSeek AI model last month.
Microsoft (MSFT), a major player in AI, fell 1% on Monday following reports from TD Cowen that the company had canceled several data center leases, suggesting a potential cooling of demand for AI and cloud capacity. However, Microsoft and other AI-focused companies have signaled plans to continue investing heavily in AI infrastructure in the coming years, which could benefit Nvidia.
Apple (AAPL) announced plans on Monday to invest $500 billion over the next four years to expand its AI, engineering, and manufacturing capabilities in the U.S.
Wall Street Eases Amid Economic and Tariff Concerns
Wall Street indexes closed lower on Monday, extending losses from the previous session. The S&P 500 dropped 0.5% to 5,983.49 points, while the Nasdaq Composite fell 1.2% to 19,286.93 points. The Dow Jones Industrial Average eked out a small gain, rising 0.1% to 43,461.95 points.
Investor sentiment was further weighed down by concerns over a slowing U.S. economy, highlighted by weak consumer sentiment data. The ongoing threat of higher U.S. trade tariffs, along with Trump’s repeated warnings of more tariffs, continued to add to market jitters.
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