U.S. stock futures ticked up on Monday, signaling a modest rebound after last week’s losses, as investors turned their focus to Nvidia’s highly anticipated quarterly earnings.
By 05:30 ET (10:30 GMT), Dow futures climbed 294 points (0.7%), S&P 500 futures rose 32 points (0.5%), and Nasdaq 100 futures gained 91 points (0.4%).
Wall Street ended last week in the red, weighed down by a drop in U.S. business activity to a 17-month low, highlighting growing concerns among businesses and consumers over Trump administration policies. Consumer sentiment also dipped to a 15-month low, while inflation expectations surged amid worries about the impact of President Trump’s tariff plans on household purchasing power.
Investors will be watching Friday’s release of the U.S. Personal Consumption Expenditures (PCE) price index for January—one of the Federal Reserve’s preferred inflation measures.
Nvidia Earnings in Focus
All eyes are on Nvidia (NVDA) as the semiconductor giant prepares to report earnings after the market closes on Wednesday. The company Nvidia is one of the most important promoters of the investment boom linked to artificial intelligence; it has seen its shares soar by around 550% over the last two years, consolidating its position as the second best-capitalized company in the world.
Investors are closely monitoring developments on Capitol Hill, where Republicans in the House of Representatives are expected to push for a vote on a comprehensive budget bill this week. Analysts at Vital Knowledge have warned that ongoing political uncertainty could negatively impact market sentiment.
“Our main concern has been and still is Washington—specifically, that extreme uncertainty at a time of elevated valuations will at the very least cap market gains. Clarity on multiple Washington-related issues may not come until summer, further fueling a cautious outlook.”
German Elections and Economic Outlook
Investors are also digesting the results of Sunday’s key election in Germany. The conservative Christian Democratic Union and its Bavarian sister party secured the most votes, but coalition negotiations remain uncertain.
The far-right Alternative for Germany (AfD) party placed second, followed by Chancellor Olaf Scholz’s center-left Social Democrats. Despite AfD’s gains—backed in part by tech mogul and Trump ally Elon Musk—mainstream German parties have ruled out forming a government with them.
Friedrich Merz, likely to be Germany’s next chancellor, is expected to lead coalition talks at a time when Europe’slargest economy is struggling and security concerns have intensified following Trump’s recent negotiations with Russia over a potential Ukraine peace deal. Some analysts suggest that consolidating parliamentary control could pave the way for fiscal easing, potentially supporting economic growth.
European markets reacted positively, with the pan-European Stoxx 600 inching higher and Germany’s DAX index rising 1.1% on Monday.
Alibaba’s Record AI Investment
In corporate news, Alibaba Group (BABA) ( 9988) unveiled plans to invest 380 billion yuan ($52.4 billion) over the next three years to expand its cloud computing and AI infrastructure—the company’s largest tech investment to date.
Alibaba aims to strengthen its position as a global AI leader and cloud provider. However, its Hong Kong-listed shares slipped, and its U.S. shares dipped in premarket trading.
Meanwhile, Warren Buffett’s Berkshire Hathaway (BRKa) posted record full-year profits for the third consecutive time, boosting its cash reserves to $334.2 billion. The 94-year-old Buffett reassured investors that his successor, Vice Chairman Greg Abel, will take over “soon.”
Gold and Oil Markets
Gold prices have increased and are nearing record highs as investors turn to safe-haven assets amid economic uncertainty and concerns about trade tariffs. The rise in precious metal prices was supported by weak economic data from the United States last week, including disappointing PMI and consumer confidence readings.
In contrast, crude oil prices continued to fall from the previous week due to expectations that oil exports from Kurdistan will resume shortly.
