U.S. equity index futures are pointing to a softer start to the trading week, with markets under pressure after last week’s mixed performance.
A key drag on sentiment is a pullback in Nvidia (NASDAQ:NVDA), with shares of the AI bellwether down around 1.6% in premarket trading. The stock’s decline is weighing on broader tech sentiment and could ripple across the major indexes.
The slide follows a Wall Street Journal report suggesting Nvidia’s proposed investment of up to $100 billion in OpenAI — aimed at supporting the training and deployment of its latest artificial intelligence models — has stalled. The report, citing people familiar with the matter, said internal concerns have emerged at Nvidia regarding the structure and execution of the deal.
Beyond Nvidia, investors remain cautious amid unresolved trade disputes and renewed uncertainty over the future path of U.S. monetary policy, reinforcing a risk-averse mood.
Trading volumes may stay relatively light ahead of Friday’s closely watched U.S. employment report from the Labor Department. Economists expect payroll growth of about 70,000 in January, up from 50,000 in December, a data point that could influence expectations for interest rates.
Wall Street ended Friday mostly lower after a volatile session that maintained a negative bias throughout the day. Following a partial rebound from an early selloff on Thursday, all three major indexes closed firmly in the red.
The Nasdaq led the declines, falling 223.3 points, or 0.9%, to 23,461.8. The Dow Jones Industrial Average dropped 179.1 points, or 0.4%, to 48,892.5, while the S&P 500 slipped 30 points, or 0.4%, to 6,939.0.
On a weekly basis, performance was mixed. The S&P 500 eked out a 0.3% gain, while the Nasdaq fell 0.2% and the Dow declined 0.4%.
Recent losses were partly driven by renewed inflation worries after data showed producer prices rose much faster than expected in December. The Labor Department reported a 0.5% monthly increase in producer prices, compared with forecasts for a 0.2% rise, while the annual rate held at 3.0%, defying expectations for a slowdown.
Political developments also weighed on sentiment. President Donald Trump renewed tariff threats, including a proposed 50% duty on aircraft sold in the U.S. by Canada over certification disputes involving Gulfstream jets. He also signed an executive order targeting goods from countries that sell or supply oil to Cuba.
Markets are also digesting Trump’s announcement that he plans to nominate former Federal Reserve governor Kevin Warsh to succeed Jerome Powell as Fed chair.
“While investors may be reassured that a familiar former Fed official is in line to take the helm, attention is likely to shift toward concerns that policy may be less accommodative than previously assumed,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management.
Sector performance on Friday reflected the risk-off tone, with gold miners among the worst performers after a sharp drop in bullion prices. Semiconductor and hardware stocks also came under heavy pressure, amplifying losses in the tech-heavy Nasdaq.
Steelmakers, airlines, biotech and housing-related stocks likewise posted notable declines, underscoring the broad-based nature of the pullback.
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