Global Markets Brace for Volatile Week as Rate Cut Hopes Fizzle and Tech Leads
US stock futures edged higher as investors cautiously returned to risk assets despite fading expectations for Federal Reserve rate cuts. The Dow, S&P 500, and Nasdaq all showed modest gains ahead of critical labor market data—the first comprehensive snapshot since the government shutdown.
Tech stocks face a pivotal moment with NVIDIA's earnings report this Wednesday. The AI bellwether's performance could determine whether the sector's lofty valuations hold amid tightening monetary policy. Last week saw notable rotation out of mega-cap tech names like Alphabet, Amazon, and Meta.
Market participants are shifting from pure growth plays to defensive positioning as the tech rally shows signs of fatigue. The jobs report and NVIDIA's earnings will set the tone for equity markets in the NEAR term, with particular implications for AI-related securities.
