US STOCKS-Wall St set to open higher on tech rebound before Nvidia results, inflation data

Wall ‌Street ​was on track to open higher on Tuesday, as technology stocks recovered from a selloff ahead of AI heavyweight Nvidia's results and an inflation report key to shaping interest rate expectations.

The gains could ease investor concerns sparked by a recent bond market ‌rout that has pushed yields higher and pressured equities. They could also help set the tone before September, a historically weaker month for stocks. Most megacaps were trading higher before the bell, with Nvidia and Meta gaining 1.3% and 0.9%, respectively.

Chipmakers Intel and Micron added 3.5% and 2.5%, respectively. Data-storage companies Western Digital and Sandisk rose 3% and 3.7%, respectively. Advanced Micro ‌Devices rose 3.2% after Raymond James upgraded the stock.

"The market's going to be more volatile but it's still early in the AI story," said Geoff Strotman, head ‌of Segal Marco Advisors' Alpha Investment Research Group. "There's some concern about valuations but the run that we've had in equities is not unjustified because earnings are strong."

Dick's Sporting Goods cratered 18% after the retailer slashed its annual forecasts, citing challenging market conditions. Sportswear giant Nike dipped 3%. At 08:28 a.m. ET, Dow E-minis were up 279 points, or 0.52%, S&P 500 E-minis were up 36 points, or 0.47%, and Nasdaq 100 ⁠E-minis were ​up 274.25 points, or 0.94%.

The benchmark S&P ⁠500 and the tech-heavy Nasdaq closed lower on Monday after a selloff in semiconductor shares. MUTED REACTION TO IRAN SANCTIONS Markets largely shrugged off the latest U.S. economic threats against Iran. Treasury Secretary Scott Bessent said ⁠that countries continuing to trade with Tehran could be forced out of the dollar-based finance system.

However, "Bessent framed the economic plan as a means to bring Iran to the negotiating table and for ​the U.S. to gain an upper hand, (rather) than an escalation," said Mohit Kumar, an economist at Jefferies. Kumar said that Iran was likely to agree to ⁠a deal with the U.S. close to the U.S. midterm elections when President Donald Trump would be willing to make the most concessions.

Investors are bracing for a slew of catalysts this week, with Nvidia's quarterly report ⁠scheduled ​and the U.S. personal consumption expenditures data due on Wednesday. The chip giant is expected to show that AI-driven demand remains robust. Any signs of slowing growth could reignite concerns over stretched valuations and how far the AI-fueled rally can extend.

Markets have grown increasingly wary of cyclical spending in the sector and the methods hyperscalers are using ⁠to fund their AI buildouts. Meanwhile, the PCE report could provide greater clarity on price pressures in the economy after an in-line consumer inflation reading earlier this month tempered ⁠bets on an interest-rate hike by the U.S. ⁠Federal Reserve in September.

Still, money market participants are pricing in one 25-basis-point rate increase by the end of the year, according to LSEG data. Against this backdrop, Fed Chair Kevin Warsh's Jackson Hole speech on Friday will be closely watched for clues on ‌how the central bank will ‌approach monetary policy.