Investors Brace for Nvidia Earnings Amid Fed Policy Caution

U.S. index futures remained steady as investors awaited Nvidia's earnings and Fed policy updates. Key market indicators showed minimal movement, with tech stocks maintaining strong performances. Eyes are on Nvidia's quarterly report, which could significantly impact market confidence in the AI boom.

U.S. index futures were muted on Tuesday, as investors refrained from placing big bets before AI chip leader Nvidia's earnings this week and amid policy caution from Federal Reserve officials ahead of the central bank's meeting minutes.

Rate-setters have offered few clues on the timing for rate cuts this year and several Fed officials on Monday refrained from noting inflation moderating to the 2% target despite recent data pointing to easing consumer price pressures. That weighed on market sentiment, with investors now awaiting remarks during the day from officials including Christopher Waller, Thomas Barkin, Raphael Bostic and Michael Barr ahead of the Fed's latest policy meeting minutes on Wednesday.

Technology stocks kicked off the week on a strong note, driving the tech-heavy Nasdaq to its highest closing level on Monday while the S&P 500 inched closer to its all-time high hit last week. Nvidia's quarterly earnings on Wednesday are also in focus, likely to be a significant market trigger and a litmus test for the success of the generative AI boom.

Data from options analytics firm Trade Alert showed Nvidia's options are primed for an 8.7% swing in either direction by Friday, translating to a market cap swing of $200 billion. "In Nvidia's case, the confidence around the artificial intelligence boom is more than just hype... It has real substance," said Derren Nathan, head of equity research, Hargreaves Lansdown

At 5:28 a.m. ET, Dow e-minis were up 3 points, or 0.01%, S&P 500 e-minis were down 0.5 points, or 0.01%, and Nasdaq 100 e-minis were down 27 points, or 0.14%. Among other individual movers, Palo Alto Networks dropped 7.9% in premarket trading after its fourth-quarter billings forecast disappointed investors.

Peloton Interactive fell 2.8% as the fitness equipment maker was looking to refinance its debt to regain its footing amid falling sales. U.S.-listed shares of Li Auto lost 4.5% after the Chinese firm postponed plans to launch pure electric SUV models to next year.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)