Nasdaq 100 and S&P500: Tech Stocks Rebound as Traders Await Nvidia Forecast

Nasdaq and S&P 500 Futures Edge Higher as Traders Eye Nvidia, Retail Earnings

U.S. stock index futures traded slightly higher Monday, with Nasdaq-100 futures gaining 0.3% and S&P 500 futures up 0.1%, as traders turned their attention to key earnings reports and fresh economic data following a volatile week driven by valuation concerns and shifting expectations around Federal Reserve policy. Dow futures underperformed, slipping 22 points, or 0.1%.

The AI trade, which came under pressure last week, may see renewed interest after Nvidia CEO Jensen Huang confirmed $500 billion in chip orders for 2025 and 2026.

Meanwhile, Alphabet shares jumped over 4% premarket after Warren Buffett’s Berkshire Hathaway disclosed a more than $4 billion stake in the Google parent.

What Happened Last Week and What’s Next for Tech?

The Nasdaq Composite closed last week down 0.5%, dragged lower by tech names including Alphabet, Amazon, Broadcom, and Meta. In contrast, the Dow and S&P 500 managed modest weekly gains despite sharp losses on Thursday. The overall tone reflected sector rotation and fading rate-cut optimism.

Fundstrat’s Tom Lee called recent conditions “choppy,” noting that while some macro concerns have eased, including a resolved government shutdown, investor uncertainty remains. He forecasted the S&P 500 could rise another 200 points from here, targeting a move above 7,000.

The focus now shifts to Nvidia’s earnings on Wednesday. After a 600% surge in revenue over the past four years, the company’s $500 billion backlog signals continued AI momentum, though at a potentially slower growth rate. The results could either reinforce or temper the AI-driven narrative that’s helped lift equities in 2023.

Which Earnings Reports Could Move the Market?

Twelve S&P 500 companies are set to report earnings this week, including major retailers and tech players. Home Depot kicks things off Tuesday, followed by Target, Lowe’s, and Nvidia on Wednesday. Walmart, Ross Stores, and Intuit will report Thursday. With consumer health in focus, these results could provide important insight into discretionary spending and inflation trends.

Also notable is Berkshire Hathaway’s decision to cut its Apple position by 15% while adding Alphabet — a move traders may interpret as a tactical rebalancing within the tech sector.

How Are Bonds Reacting to Delayed Data?

Treasury yields eased slightly Monday morning as traders braced for a busy slate of delayed economic releases. The benchmark 10-year yield dipped 3.1 basis points to 4.117%, while the 2-year fell to 3.593%.

September’s nonfarm payrolls report, due Thursday, will be the first major release since the end of the government shutdown. Investors will also receive August construction spending and trade balance data earlier in the week, along with FOMC minutes Thursday, which could clarify the Fed’s stance on rate moves in December.

Market Forecast: Cautiously Bullish Outlook Hinges on Earnings, Payroll Data

Short-term sentiment remains cautious, but the market has shown resilience in the face of recent selling pressure. With the AI trade potentially reigniting and key retail and tech earnings ahead, bulls may regain control if Nvidia delivers and job data points to a cooling but stable labor market. Treasury yields and Fed commentary later in the week could either bolster or cap any upside momentum.

More Information in our Economic Calendar.