Stock Futures Dip as Market Awaits Nvidia Earnings Amid Broader Rally

US stock futures edged lower Monday following a record-setting surge, with investors pivoting focus to Nvidia's impending earnings report. Dow, S&P 500, and Nasdaq 100 futures each slipped 0.2%, tempering Friday's explosive gains that saw the Dow clinch its first record close of 2025.

The chipmaker's Wednesday results loom as a critical test for both the AI darling and the broader market. Analysts project $1.01 EPS on $46.13 billion revenue, with climbing price targets reflecting insatiable demand for AI infrastructure. Nvidia shares hover near all-time highs, boasting a 32% YTD gain and near-doubling since April's trough.

Friday's rally, fueled by Fed Chair Powell's signal for potential September rate cuts, propelled the Nasdaq 1.9% higher. The S&P 500 narrowly missed a fresh peak while the Dow's 800-point surge marked a decisive breakout. Market participants now watch for rotation signals beyond tech's dominance.