US stock futures popped on Monday, pointing to a rebound from a recent slide as investors weighed prospects for AI growth in the countdown to Nvidia (NVDA) earnings later in the week.
Dow Jones Industrial Average futures (YM=F) climbed 0.7%, on the heels of its worst week since October. Contracts on the S&P 500 (ES=F) and the tech-heavy Nasdaq 100 (NQ=F) added 0.5% and 0.4%, respectively.
Stocks are turning upbeat after Friday’s steep declines capped a losing week, which was marked by data showing American consumers and businesses are getting concerned about President Trump’s tariff plans.
How well Nvidia is navigating the looming threat of those tariffs will be closely watched when the AI chipmaker reports its results on Wednesday — the highlight of the week. Eyes are also on Big Tech demand for AI, underlined by signs that Microsoft (MSFT) is pulling back on datacenter construction. The risks to Nvidia from China-based DeepSeek’s lower-cost AI are also in focus.
CME – Delayed Quote USD
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Meanwhile, a win for mainstream German parties in Sunday’s elections cheered investors grappling with uncertainty around Trump’s quick-moving policy shifts. The benchmark DAX stock index jumped nearly 1% on Monday morning as business optimism for an economic turnaround grew.
Key events this week include the January report for the Personal Consumption Expenditure (PCE) index on Friday. The PCE index is the Federal Reserve’s preferred measure for inflation. Reports on US GDP, the housing market, and consumer confidence are also due this week.
In other earnings, reports this week are due from Lowe’s (LOW), Home Depot (HD), and Salesforce (CRM).
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German stocks jump as investors embrace election result
German stocks surged on Monday after a win for conservatives in Sunday’s election opened the door to a mainstream coalition government and increased spending.
The benchmark DAX (^GDAXI) index of stocks in Frankfurt jumped roughly 1% on the heels of victory for Friedrich Merz and CDU-led conservative parties. Meanwhile, the MDAX (^MDAXI) gauge of stocks in medium-sized companies soared 2.6%.
Gains for the pan-European Stoxx 600 (^STOXX) were more limited, up about 0.3%. Prosus (PRX.AS) pulled back almost 7% amid its deal to buy Just Eat Takeaway.com (JTKWY, T5WA.F), dragging on the index, while the food delivery company’s shares rose 5%.
In London, the FTSE 100 index (^FTSE) put on 0.3%, but the CAC (^FCHI) in Paris retreated 0.2%. A 10% loss for electric gear maker Schneider Electric (SU.PA, SBGSF) weighed on the French benchmark as investors weighed signs of a pullback in datacenter spending by Microsoft (MSFT).
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Alibaba makes shift to AI, announcing plans to invest $53 Billion
Alibaba Group Holding Ltd.(BABA) is poised to make moves on the market open after announcing that the e-commerce giant will pivot into AI infrastructure.
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Gold keeps near record as inflation drives haven demand
Gold (GC=F) buyers are eyeing a ninth consecutive week of gains. The commodity holds strong around record prices as investors seek stable assets in a volatile market.
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Australian “Big Four” bank shares calm after after $40 billion sell-off
Australian bank stocks are levelling after cratering through the start of 2025.
