U.S. stock futures rose slightly after the Dow Jones index closed above 40,000 for the first time last Friday. This week's earnings highlight will be directed by Nvidia (NASDAQ: NVDA), a manufacturer specializing in AI-optimized chips, which is expected to once again report soaring revenues. Additionally, several Federal Reserve officials will speak on Monday, and investors will try to predict the future direction of the Fed’s monetary policy.
Futures Point to Gains
On Monday, U.S. stock futures generally rose, indicating that the market is continuing its upward momentum from the previous trading day when the blue-chip Dow Jones Industrial Average closed above the 40,000 mark for the first time.
As of 3:48 a.m. Eastern Time (7:48 a.m. Global Time), Dow futures contracts were up 19 points, or 0.1%; S&P 500 futures were up 4 points, also 0.1%; and Nasdaq 100 futures were up 22 points, a rise of 0.1%.
Recent data indicates that the U.S. economy may be cooling down, which has alleviated some ongoing inflation concerns and increased market hopes that the Federal Reserve might lower interest rates by September, after maintaining high rates for over two decades. The Dow, S&P 500, and tech-heavy Nasdaq Composite all hit record highs last week.
Nvidia Earnings in Focus This Week
This week's earnings schedule will spotlight Nvidia, with traders eagerly anticipating whether the AI GPU manufacturer will once again report a surge in revenues from its critical data center unit.
So far this year, the company's stock has surged nearly 92%, becoming a focal point of the AI boom. Nvidia stated in February that it expects first-quarter revenues to soar to $24 billion. CEO Jensen Huang said he believes "accelerated computing and generative AI have reached a tipping point."
Fed Officials' Speeches and Meeting Minutes This Week
Several Federal Reserve officials are scheduled to speak on Monday, potentially offering insights into the future path of the Fed’s monetary policy.
Federal Reserve Governors Christopher Waller, Philip Jefferson, and Michael Barr are scheduled to speak at different events.
Later this week, the Federal Reserve will release the minutes of its April 30-May 1 meeting. During the meeting, Fed Chair Jerome Powell indicated that due to ongoing inflation pressures, interest rates may need to remain at elevated levels for an extended period.
China Maintains Benchmark Lending Rates
On Monday, the People's Bank of China kept its benchmark Loan Prime Rate (LPR) unchanged as expected while continuing to implement other stimulus measures to support the economy.
The People's Bank of China maintained its one-year LPR at 3.45%, and the five-year rate, used for determining mortgage rates, remained at 3.95%.
Oil Prices Rise Amid Uncertainty Over Iran
On Monday, oil prices edged higher, continuing last week’s gains due to uncertainties in Middle Eastern politics, particularly after Iranian President Ebrahim Raisi was reported dead in a helicopter crash in a remote part of the country’s northwest.
