US stock futures rose at the start of a busy week. Investors are awaiting Nvidia’s earnings report on Wednesday and the economic data that government agencies will release after a long hiatus. Meanwhile, Alphabet shares rose 5.6% after Berkshire Hathaway announced it had acquired a new stake in the company.
Berkshire Hathaway opened a new position of $4.3 billion in Alphabet while reducing its stake in Apple. Apple shares fell 0.3% before the opening.Nvidia and Big Tech Companies Under Close Watch
Nvidia shares traded 0.4% up ahead of earnings reports to be released after Wednesday’s close. The company is seen as the barometer of AI-focused stocks that have driven the Wall Street rally this year.
As of 05:02 ET:
- S&P 500 E-mini rose 0.44%,
- Nasdaq 100 E-mini increased 0.69%,
- Dow E-mini rose 0.12%.
This week, retail giants Walmart, Home Depot and Target will also announce their earnings.
82.7% of S&P 500 companies have already exceeded their profit expectations, with total profit growth for the third quarter reaching 16.9%, the highest level since the last quarter of 2024.Economic Data Returns
With the end of the longest government shutdown in US history, delayed macroeconomic data will begin to be released this week.
The September employment report, to be released on Thursday, is expected to confirm the labor force slowdown indicated by private sector data.
Uncertainty continues regarding the interest rate outlook. The market is pricing in a over 56% probability of the Fed keeping interest rates unchanged in December. The 25 basis point cut, which was expected with a 94% probability a month ago, is now a weaker possibility.
SEB strategists made the following assessment in their note:
“If there is a lot of uncertainty about the economy, lower interest rates may be a reasonable outcome. However, this view is not shared by the majority of Fed members.”
At least four Fed officials, including Fed Governor Christopher Waller and New York Fed President John Williams, will speak today. On Wednesday, the Fed’s October meeting minutes will be released.
Market Update
Due to rising valuations and uncertainty about interest rate cuts, US stock markets have experienced a volatile period in recent weeks.
On Friday, the S&P 500 and Dow Jones finished the week slightly higher, while the Nasdaq recorded a small decline.
Another stock that stood out in early trading was Quantum Computing, which increased its third-quarter revenue, rising over 20%.
It rose.This week, Nvidia’s results and the renewed flow of economic data will be decisive in determining the direction of the markets.
