Investing.com – U.S. stock futures rose modestly in late afternoon trade on Sunday after a series of record highs on Wall Street, with sentiment remaining cautiously optimistic ahead of more interest rate and earnings signals this week.
rose 0.1% to 5,334.25 and was up 0.1% at 18,661.50 by 7:23 pm ET (2323 GMT). increased by 0.1% to 40,179.0 points.
New Fed signals and PMI data coming this week
This week, the focus will be on additional signals from the Federal Reserve on interest rate paths as the central bank meets at the end of April on Wednesday.
The bank kept rates steady and warned it needed more confidence that inflation was falling. But Fed Chairman Jerome Powell also said that rate cuts are eventually expected in 2024.
Several Fed officials will also speak this week, focusing on members of the Fed’s rate-setting committee.
The Fed’s signals come amid heightened scrutiny of the bank’s plans to cut interest rates, especially after slightly softer inflation readings in April raised bets on a rate cut in September.
In addition to additional interest rate signals, markets are also awaiting data for May, which should provide more signals about US business activity. Any signs of cooling could affect the prospects for lower interest rates.
Wall Street Loses Momentum After Record Highs
While Wall Street indexes hit new highs last week, they continue to lose momentum amid uncertainty about when the Fed might start cutting rates.
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Overheated valuations, especially in the technology sector, and a cooling frenzy around artificial intelligence are also limiting the indices’ upside.
On Friday, the index rose 0.1% to 5,303.27 points and fell 0.1% to 16,685.97 points. The increase was 0.3%, to 40,003.59 points.
NVIDIA’s first quarter earnings will be released this week
This week also focused on the quarterly earnings of beloved AI company NVIDIA Corporation (NASDAQ:) to see if the company can justify its steep valuation increase over the past year.
Nvidia will also post strong earnings growth, with revenue expected to be $24.8 billion, up from $7.2 billion last year, and earnings per share expected to be $5.57, up from $1.09 last year, according to Reuters estimates. .
Nvidia’s earnings are also expected to likely shape the trajectory of other tech stocks given their growing reliance on artificial intelligence.