Author: Fiona Craig

U.S. stock futures are signaling a mostly flat start to Monday’s trading session, with markets expected to show limited movement after posting solid gains last week.

With no major economic releases scheduled for today, investors are likely to stay cautious, awaiting several important data points set to drop in the coming days.

All eyes will be on Tuesday’s consumer price index (CPI) report from the Labor Department, which could heavily influence expectations for future interest rate changes.

Economists forecast a modest 0.2% rise in consumer prices for July, down slightly from June’s 0.3% increase. Year-over-year inflation is anticipated to edge up to 2.8% from 2.7%.

Core inflation, which excludes volatile food and energy costs, is projected to grow 0.3% in July, up from 0.2% in June, pushing the annual figure slightly higher to 3.0% from 2.9%.

Ahead of these figures, CME Group’s FedWatch tool shows an 86.4% probability that the Federal Reserve will cut interest rates by 25 basis points next month.

Additional reports on producer prices, retail sales, and industrial output are also expected to attract investor focus later this week.

After a mixed Thursday, stocks mostly rallied on Friday, with the tech-heavy Nasdaq closing at a fresh record high.

The Nasdaq added 207 points (1.0%) to finish at 21,450, while the S&P 500 gained 49 points (0.8%) to close at 6,389. The Dow Jones rose 207 points (0.5%) to end at 44,176.

For the week, the Nasdaq surged 3.9%, the S&P 500 climbed 2.4%, and the Dow advanced 1.4%.

Markets shrugged off worries about the economic fallout from President Donald Trump’s new tariffs on several U.S. trading partners, which took effect at midnight.

Apple (NASDAQ:AAPL) was a standout, rallying 4.2% to hit its highest close in five months after unveiling plans to invest roughly $600 billion in the U.S. over the next four years.

The NYSE Arca Computer Hardware Index also saw gains, climbing 1.4%, while banking stocks rose alongside the KBW Bank Index, which gained 1.2%.

Oil services, brokerage firms, and networking stocks showed strength, but commercial real estate shares moved lower.

Among notable movers, LegalZoom.com (NASDAQ:LZ) soared 31% after Bank of America upgraded its rating from Underperform to Buy.

Travel site TripAdvisor (NASDAQ:TRIP) jumped 11.7% following an earnings beat in the second quarter.

Conversely, Trade Desk (NASDAQ:TTD) shares plunged 38.6% after multiple Wall Street firms downgraded the stock despite strong earnings.

Salad chain Sweetgreen (NYSE:SG) dropped 23.1% after reporting disappointing Q2 results and lowering its full-year revenue forecast.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

U.S. stock markets closed the week on a strong note Friday, buoyed by robust gains in technology shares.

The Nasdaq Composite climbed 0.98% to reach a fresh record high of 21,450.02, having hit an intraday peak earlier. Meanwhile, the S&P 500 added 0.78% to close at 6,389.45—just shy of its all-time closing high—and the Dow Jones Industrial Average rose 0.47%, or 207 points, finishing at 44,175.61.

All three major indexes posted weekly gains: the Dow rose approximately 1.4%, the S&P 500 advanced 2.4%, and the Nasdaq led with a 3.9% jump.

Apple (NASDAQ:AAPL) was a standout contributor to the tech rally, helping to lift both the Nasdaq and the technology sector within the S&P 500. Shares surged 13% over the week, marking the biggest weekly gain since July 2020, following the company’s announcement of a $600 billion investment in the U.S. over four years aimed at strengthening ties with the Trump administration.

Looking ahead, the market now turns its attention to July’s consumer price index (CPI) report due Tuesday, which is expected to show a 2.8% year-over-year increase, according to Reuters polling.

A higher-than-expected inflation reading could temper expectations for interest rate cuts, which have been priced in heavily after softer jobs data. Futures markets currently reflect over a 90% chance of a rate cut at the Federal Reserve’s September meeting, with at least two cuts anticipated this year, based on LSEG data.

Seasonal trends add another layer of caution, as August and September have historically been the weakest months for the S&P 500 over the past 35 years, with average declines of 0.6% and 0.8%, respectively.

Investors will also watch for any signs that President Trump’s tariffs are impacting consumer prices, as June data hinted at inflationary pressures in certain goods.

“While the weak July payroll report materially raised the probability of a September cut in the bond market’s eyes, we may need to see a softer CPI print this week to maintain such a high probability of a cut for September,” said Morgan Stanley strategist Michael Wilson.

Wilson added that a below-consensus CPI could spark a durable shift toward small-cap and lower-quality stocks that many investors have been anticipating. Conversely, a hotter CPI reading with tariff pressures appearing in core goods might lead to initial market leadership by more defensive, higher-quality sectors.

Other important economic data due this week includes Wednesday’s producer price index (PPI), followed by retail sales and the University of Michigan consumer sentiment index on Friday.

Q2 Earnings Wrap-Up

As the second-quarter earnings season winds down, results have generally been strong with a solid rate of beats and upward forecast revisions. Clearer sector trends are now emerging.

RBC Capital Markets noted that while many companies surpassing earnings expectations have not seen immediate stock price gains, three Russell 1000 sectors—Energy, Health Care, and Utilities—have bucked this trend with stronger price reactions following positive results.

Most S&P 500 sectors have seen upward revisions to earnings per share and revenue estimates, with Technology leading on both fronts, followed by Communication Services and Financials. Technology is also the only sector showing recent upward revisions to consensus operating margin forecasts for both Q2 and Q3, according to RBC, while overall market margin expectations have softened.

This week’s earnings calendar includes notable reports from AMC Entertainment (NYSE:AMC), Cisco Systems (NASDAQ:CSCO), JD.com (NASDAQ:JD), and Applied Materials (NASDAQ:AMAT), among others.

Analyst Views on U.S. Stocks

• JPMorgan: “Given the more mixed labor market data, expectations for Fed cuts have been brought forward. Markets now price a 90% chance of a rate cut in September, signaling a return to easing after a nine-month pause. The key question is how these cuts will affect the indices and sector leadership, especially after the significant rebound in cyclical sectors in both the U.S. and Europe.”
• Morgan Stanley: “We remain bullish over a 6-12 month horizon supported by improving earnings and cash flow. Our favored sectors include Industrials and Financials, and we prefer U.S. equities over international ones. Consumer discretionary remains underweight due to tariff concerns and weaker pricing power.”
• Yardeni Research: “Despite weaker economic data recently, the S&P 500 has kept rising. Possible reasons include investor confidence in a Fed easing in September (though we’re skeptical), receding recession fears, a rebound in productivity in Q2, and the ongoing economic boost from the Digital Revolution.”

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Allianz Technology Trust (LSE:ATT) announced on Monday a profit attributable to ordinary shareholders of £44.9 million for the six months ending June 30, 2025, boosted by £48.8 million in fair value investment gains.

During this period, the trust’s net asset value (NAV) total return reached 2.9%, outperforming the Dow Jones World Technology Index (sterling-adjusted, total return), which declined by 0.2%. The share price rose by 1.2%, although the discount to NAV widened to 10.1%, up from 8.4% at the close of 2024. NAV per ordinary share grew to 471.8p from 458.6p, and shareholders’ equity increased slightly to £1,765 million from £1,746.9 million.

Strong performance was driven by gains in entertainment technology, semiconductor stocks, and selected software and IT services. Notably, underweight positions in Apple (NASDAQ:AAPL) and stakes in Cloudflare (NYSE:NET), Spotify Technology (NYSE:SPOT), Robinhood Markets (NASDAQ:HOOD), and CrowdStrike Holdings (NASDAQ:CRWD) outperformed the benchmark.

Conversely, the trust’s largest drag came from underweight holdings in Microsoft (NASDAQ:MSFT) and Nvidia (NASDAQ:NVDA), alongside positions in Atlassian (NASDAQ:TEAM), Klaviyo (NYSE:KVYO), and Alibaba (NYSE:BABA).

Technology hardware stocks declined nearly 20% amid macroeconomic concerns and tariff-related pressures, while semiconductor shares gained ground on growing demand driven by artificial intelligence.

Companies with market caps between $250 billion and $1 trillion, and those from $10 billion to $250 billion, recorded a 6.4% rise, whereas super-megacaps exceeding $1 trillion fell by 4%.

To manage the discount, the trust bought back 6,873,738 shares during the half-year period at an average discount to NAV and subsequently canceled them. No performance fee was recorded.

Top holdings as of June 30 included Nvidia, Microsoft, Broadcom (NASDAQ:AVGO), Apple, Meta Platforms (NASDAQ:META), Taiwan Semiconductor, Alphabet (NASDAQ:GOOGL), Advanced Micro Devices (NASDAQ:AMD), CyberArk Software (NASDAQ:CYBR), and Snowflake (NYSE:SNOW).

Market volatility was influenced by geopolitical tensions, including U.S. protectionist policies introduced by President Donald Trump and conflicts involving Israel and Iran. Central banks took differing approaches to interest rates, with the Federal Reserve holding rates steady, several major banks cutting rates, and the Bank of Japan opting to raise rates.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

European defense shares declined in early Monday trading as investors assessed the prospects of a potential peace agreement between Ukraine, the U.S., and Russia ahead of the scheduled meeting between President Donald Trump and Russian President Vladimir Putin later this week.

Stocks of companies such as Renk (TG:R3NK) and Hensoldt (BIT:1HENS) each fell over 2%, alongside Germany’s Rheinmetall (BIT:1RHM) and Italy’s Leonardo (BIT:LDO).

With the summit set for Friday in Alaska, Trump hinted that a resolution to the ongoing conflict in Ukraine might involve territorial exchanges between the involved parties. He announced the upcoming talks last Friday, coinciding with a self-imposed deadline for Russia to agree to a ceasefire or face additional sanctions from Washington.

Concerns have emerged over the absence of Ukrainian President Volodymyr Zelenskiy from the talks, raising questions about whether Ukraine might be pressured into accepting terms dictated by the U.S. and Russia. Despite this, Zelenskiy continues to receive strong support from NATO and various European nations, who emphasize that Kyiv’s participation in negotiations is essential.

U.S. Vice President JD Vance has indicated that efforts are underway to organize a meeting involving Trump, Putin, and Zelenskiy.

Previous attempts at peace, including three rounds of talks between Ukraine and Russia over recent months, have yet to bring an end to the conflict.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Gold prices dropped Monday amid reduced geopolitical worries, as investors shifted focus to critical U.S. inflation data set to be released this week.

By 04:30 ET (08:30 GMT), Spot Gold declined 1% to $3,365.26 an ounce, while December Gold Futures fell 2.1% to $3,419.90 per ounce.

Calm before the Ukraine summit

The gold market continued its recent downturn, influenced by the approaching meeting between U.S. President Donald Trump and Russian President Vladimir Putin on August 15 in Alaska, aimed at negotiating an end to the conflict in Ukraine. The passing of Trump’s deadline without harsher U.S. sanctions on Russia contributed to easing investor concerns, lowering demand for gold as a safe haven.

“But with Russia demanding that Ukraine cede occupied territory to end the war, it’s difficult to see a quick solution,” said analysts at ING, in a note. “It’s unlikely that Ukraine will agree to give up its own territory.”

Inflation data takes center stage

Market attention now turns to key inflation indicators from the U.S. The Consumer Price Index (CPI) for July is due Tuesday, followed by the Producer Price Index (PPI) later in the week.

Traders are awaiting these readings to help gauge the Federal Reserve’s policy direction, with expectations of a September rate cut priced near 90% following disappointing employment numbers earlier this month.

The U.S.-China tariff truce, which has paused escalation of import duties, expires on August 12. While optimism exists for its extension, uncertainty remains high.

Tariff uncertainty hits gold imports

Last week, gold futures climbed to a record above $3,530 an ounce after the U.S. Customs and Border Protection ruled that standard 1-kilogram and 100-ounce gold bars would be subject to import tariffs.

This ruling caused disruptions in bullion flows, with some Swiss refiners halting shipments to the U.S., Reuters reported. Industry groups warned this move could negatively impact the global gold trade, especially since Switzerland is a major refining hub.

“However, this has now eased, with reports that the White House will clarify the issue with an executive order amid suggestions that gold bar imports won’t face tariffs,” ING added.

Other metals retreat

Other precious metals also saw declines: Platinum Futures slipped 0.7% to $1,330.80 per ounce, and Silver Futures dropped 1.4% to $37.990 per ounce.

Copper futures softened as well, with contracts on the London Metal Exchange down 0.1% to $9,751.50 per ton and U.S. Copper Futures falling 0.5% to $4.4485 per pound.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Oil prices continued to slide during Monday’s Asian trading session, following sharp losses last week as investors turned their attention to upcoming discussions between the U.S. and Russia that could signal easing tensions in the Ukraine conflict.

Weak inflation figures from China, the world’s largest oil importer, also pressured markets, alongside mixed signals about the country’s economic recovery in July. These factors, combined with a series of disappointing economic data points recently, have dampened optimism about future oil demand.

By 21:35 ET (01:35 GMT), October Brent crude futures declined by 0.8% to $66.08 per barrel, while West Texas Intermediate (WTI) crude fell 0.8% to $62.47 per barrel. Both benchmarks had dropped over 4% during the previous week.

US-Russia Summit and Oil Export Sanctions in Spotlight

A summit between U.S. President Donald Trump and Russian President Vladimir Putin is scheduled for August 15, with hopes that talks will pave the way to resolving the ongoing war in Ukraine. Meanwhile, the U.S. has intensified efforts to curb Russia’s oil exports by targeting its largest buyers, China and India.

In an attempt to deter Russian oil purchases, the Trump administration imposed tariffs of up to 50% on Indian imports and threatened similar measures against China. Although these tariff threats provided some support to oil prices last week, concerns remain over broader U.S. trade policies that could suppress demand.

China’s Inflation Disappoints, US Data in Focus

China reported stagnant consumer price inflation for July, while producer prices fell more than expected, underscoring persistent deflationary pressures in the country. This data follows a string of moderate economic reports, suggesting Beijing’s stimulus efforts and a recent easing of trade tensions with the U.S. are offering limited support.

Additionally, adverse weather in July appeared to impact China’s economic activity negatively.

Attention now shifts to the U.S. consumer price index (CPI) for July, set for release on Tuesday. Analysts anticipate that signs of easing inflation could strengthen expectations for a Federal Reserve interest rate cut in September. The CPI reading is particularly important given the U.S.’s role as the largest global oil consumer and the potential inflationary effects from Trump’s tariff policies.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

The U.S. dollar remained mostly steady on Monday as traders prepared for several important upcoming events: the release of July’s U.S. Consumer Price Index (CPI), the meeting between Presidents Donald Trump and Vladimir Putin, and the looming deadline for a trade deal between Washington and Beijing.

By 04:05 ET/08:05 GMT, the Dollar Index, which measures the greenback against a basket of six major currencies, inched up slightly to 98.050, recovering somewhat after sharp declines last week.

July CPI in focus

Since the release of a weak payroll report earlier this month, the dollar has faced pressure, raising expectations that the Federal Reserve will reduce interest rates at its September meeting. Currently, markets are pricing in over a 90% probability of such a cut.

Attention now shifts to Tuesday’s July consumer price data, with economists and policymakers cautioning that tariffs imposed by the Trump administration may accelerate inflation.

“Consensus is expecting another acceleration in core CPI, to 0.3% month-on-month (3.0% year-on-year), in this week’s July print,” noted analysts at ING in a report. “That is a number that can probably be seen as acceptable for the Federal Reserve to proceed with a September cut, given the backdrop of a significantly weaker jobs market.”

Trade negotiations between the U.S. and China are also under scrutiny as the August 12 deadline for a tariff deal approaches. Both sides aim to finalize an agreement to prevent the imposition of triple-digit tariffs on goods.

Market sentiment favors an extension of the truce, especially after reports over the weekend from the Financial Times that chipmakers Nvidia (NASDAQ:NVDA) and AMD (NASDAQ:AMD) have agreed to give the U.S. government 15% of their revenue from sales of chips to China.

Euro supported by Ukraine talks

In Europe, the euro gained 0.1% against the dollar to 1.1651, buoyed by hopes that the upcoming meeting between Presidents Putin and Trump may pave the way for a ceasefire in Ukraine.

“The considerable uncertainty surrounding the outcome and the reduced G10 FX sensitivity to the Ukraine conflict limit the case for significant adjustments to our EUR view at this time,” ING analysts added.

The British pound traded flat at 1.3451 ahead of Tuesday’s crucial employment report. A survey by the Chartered Institute of Personnel and Development revealed that UK private sector hiring intentions fell to their lowest since the pandemic, with just 57% of employers planning to recruit in the next quarter, down slightly from 58% in the previous survey.

Yuan weakens ahead of trade talks

The Chinese yuan edged lower against the dollar, with USD/CNY at 7.1830 after weekend data showed inflation remained subdued in July. Consumer prices were flat, while producer price inflation contracted more than expected, signaling weakening momentum despite Beijing’s recent stimulus efforts.

Trade relations between China and the U.S. remain in the spotlight as both countries approach the August 12 deadline for a lasting tariff truce. Earlier this year, Washington and Beijing agreed to temporarily ease tariffs, with hopes of reaching a permanent deal. President Trump hinted last week at a possible extension of the deadline, as talks between the two economic giants continue.

Other currency moves

The Japanese yen fell 0.1% to 147.63 against the dollar amid light trading while Japan observes a public holiday. Meanwhile, the Australian dollar slipped 0.1% to 0.6519 ahead of the Reserve Bank of Australia’s meeting on Tuesday, where a rate cut is widely expected following a surprise hold in July.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

British shares opened higher on Monday, with the pound gaining ground, following data revealing the weakest hiring plans among UK firms since the pandemic began—pointing to a gradual slowdown in the previously resilient labor market.

By 07:15 GMT, the FTSE 100 had risen 0.3%, while the British pound increased 0.09% against the US dollar, crossing above 1.34. Meanwhile, Germany’s DAX slipped 0.06%, and France’s CAC 40 climbed 0.1%.

UK companies reveal lowest hiring intent since pandemic

Surveys published Monday indicate UK employers’ hiring appetite has softened to its weakest level since COVID-19 struck. The Chartered Institute of Personnel and Development (CIPD) found that only 57% of private sector companies plan to recruit in the next three months—the lowest since early 2021. This represents a slight drop from the previous quarter, when 58% of private employers aimed to hire.

S4 Capital in initial talks to acquire MSQ Partners

Digital marketing firm S4 Capital PLC (LSE:SFOR) confirmed it is in early-stage discussions about acquiring MSQ Partners. The company acknowledged media speculation but gave no details on terms or timing of the potential deal.

Plus500 plans $165 million return to shareholders via buybacks and dividends

Fintech firm Plus500 (LSE:PLUS) announced a shareholder return of $165 million following a solid first half, including a 4% revenue increase to $415.1 million and a net profit of $149.6 million, slightly above last year’s $148.8 million. The payout consists of $90 million in share buybacks—split between a $35 million interim program and a $55 million special repurchase—and $75 million in dividends, divided into a $35 million interim dividend and a $40 million special dividend.

GSK obtains FDA priority review for oral gonorrhea antibiotic

Pharmaceutical company GSK (LSE:GSK) revealed that the U.S. Food and Drug Administration has accepted its priority review application for gepotidacin, an oral antibiotic targeting uncomplicated gonorrhea.

M&S resumes clothing click-and-collect after cyberattack disruption

Marks & Spencer (LSE:MKS) has restarted its clothing click-and-collect service after suspending it due to a cyber hack and data breach. Online delivery resumed on June 10, with click-and-collect now back in operation.

Heathrow records busiest July ever with strong North American traffic

Heathrow Airport announced its busiest month on record in July, driven largely by high traffic on routes to North America, especially around Independence Day. The airport also had its busiest day ever on August 1 and remains Europe’s most punctual major hub, outperforming Amsterdam, Paris, Frankfurt, and Madrid airports.

Rolls-Royce transfers £4.3 billion UK pension scheme to insurer

Rolls-Royce (LSE:RR.) completed a £4.3 billion deal transferring its UK pension obligations to Pension Insurance, covering 36,000 members and related liabilities. CFO Helen McCabe described the transaction as “a win-win for all our stakeholders” and “another step on our journey towards simplifying Rolls-Royce.”

Spectris opts for KKR’s $6.4 billion offer, dropping Advent bid

Scientific instruments maker Spectris (LSE:SXS) announced it will not pursue Advent’s buyout proposal, choosing instead to support competitor KKR’s $6.4 billion offer.

European stock markets opened the week with slight gains as investors continued to navigate the shifting trade environment.

By 07:05 GMT, Germany’s DAX index inched up 0.1%, France’s CAC 40 advanced 0.2%, and the U.K.’s FTSE 100 increased by 0.2%.

Last week, key European indices posted solid gains, following Wall Street’s lead, buoyed by strong second-quarter earnings and a recent trade deal between the European Union and the United States that diminished the risk of an expensive trade conflict.

Trade Talks Between U.S. and China Take Center Stage

Meanwhile, the picture was less optimistic elsewhere as new tariffs imposed by the Trump administration came into force on Thursday, with some import duties reaching as high as 50% on regional economies.

Moreover, the current tariff ceasefire between the U.S. and China is set to expire on August 12.

Although markets remain hopeful for an extension, uncertainty lingers about the future, given that a trade dispute between the world’s two largest economies could have far-reaching global impacts.

U.S. President Donald Trump commented Monday that he hopes China will “quickly quadruple” its soybean purchases from American farmers, presenting this as a strategy to reduce Beijing’s trade deficit with Washington.

Earnings Reports Thin as Summer Progresses

Corporate earnings releases are light this Monday as the market moves deeper into the slow summer period.

Marshalls (LSE:MSLH) reported a decline in profits for the first half of 2025 compared to the previous year, attributing the drop to weaker margins in its Landscaping Products segment, which offset improvements in Roofing and Building Products.

Danish offshore wind developer Orsted (TG:D2G) announced plans for a rights issue amounting to approximately $9.4 billion, citing challenges in the U.S. offshore wind sector.

“We believe we are approaching the time to look for the next leg higher in the eurozone,” said analysts at JPMorgan in a recent note.

“In the interim, the market needs to work through the stagflationary risks stemming from the U.S., and also the more mixed European earnings delivery.”

Oil Prices Decline Ahead of U.S.-Russia Talks on Ukraine

Oil prices extended last week’s losses on Monday ahead of planned discussions between the U.S. and Russia regarding the ongoing conflict in Ukraine.

At 03:05 ET, Brent crude futures dropped 1% to $65.93 per barrel, while U.S. West Texas Intermediate futures fell 1.1% to $63.16 per barrel.

Both benchmarks fell more than 4% last week after news emerged that President Trump is scheduled to meet Russian President Vladimir Putin on August 15 in Alaska to negotiate a resolution to the Ukraine war.

Expectations are rising for a possible lifting of sanctions that have restricted Russian oil supplies to the global market.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

U.S. stock futures edged higher on Monday ahead of a packed week of crucial economic reports that may influence the direction of interest rates in the near future. Meanwhile, artificial intelligence continues to capture investor attention, driving the tech-heavy Nasdaq Composite to a record closing high last week.

According to media sources, Nvidia (NASDAQ:NVDA), a leader in AI technology, is set to share a portion of its China sales revenue with the U.S. government. At the same time, C3.ai released a preliminary earnings report that fell short of analyst expectations, adding some caution to the AI sector’s recent surge.

Futures Climb

Ahead of this data-heavy week, futures on major U.S. indexes moved upward. By 03:00 ET, Dow futures were up 108 points (0.2%), S&P 500 futures increased by 12 points (0.2%), and Nasdaq 100 futures gained 37 points (0.2%).

The Nasdaq Composite hit an all-time high in the previous session, with strong gains across other benchmarks as well. Apple (NASDAQ:AAPL) led the charge with its stock soaring over 13% last week—the largest weekly jump since 2020—fuelled partly by optimism that the company’s commitment to increased U.S. investment could help it sidestep many of President Donald Trump’s tariffs. Both the S&P 500’s technology and communication services sectors closed at record levels.

Investor hopes that a recent slowdown in U.S. job growth will prompt the Federal Reserve to cut interest rates at its September meeting also lent support to equity markets (details below).

Nvidia to Share China AI Chip Revenues with U.S. Government – Report

The New York Times reported that Nvidia plans to give the U.S. government 15% of the revenue it earns from selling AI technology in China.

The report, citing sources close to the matter, said Nvidia CEO Jensen Huang met with President Trump at the White House last week and agreed to “grant Washington a cut of the money it rakes from its business in the large — and lucrative — Chinese market.” Advanced Micro Devices (NASDAQ:AMD) has reportedly agreed to a similar arrangement.

Following this meeting, the U.S. Commerce Department issued licenses allowing Nvidia to begin sales of its China-specific H20 AI chip, despite the White House’s earlier announcement last month that sales were authorized.

C3.ai Shares Tumble

Shares of C3.ai (NYSE:AI) fell sharply in after-hours trading after the company issued a preliminary earnings update that disappointed investors.

Released after Friday’s market close, the company projected Q1 revenue between $70.2 million and $70.4 million, with an adjusted loss ranging from $57.7 million to $57.9 million.

Analysts had expected revenue of $104 million and an operating loss of $27.3 million. C3.ai also noted it is restructuring its sales and services division.

The Redwood City, California-based firm plans to release its full quarterly results on September 3.

Upcoming Economic Data

Investors will closely watch Tuesday’s release of July’s U.S. consumer price index data.

Additional reports on producer prices for final demand will follow Thursday, with retail sales figures and consumer sentiment surveys scheduled for Friday.

Inflation and labor market conditions remain the Federal Reserve’s twin focus points. Recent weak job growth and downward revisions for May and June suggest a cooling labor market, which could support arguments for rate cuts to boost spending and investment.

However, inflation continues to stay above the Fed’s 2% target, stoking concerns that lowering borrowing costs too soon could reignite price pressures.

Fed’s Bowman Supports Rate Cuts

In this uncertain environment, the Federal Reserve has mostly taken a “wait-and-see” approach on rates, awaiting more clarity on how tariffs affect the economy.

Still, some Fed officials are signaling a growing openness to rate reductions. Two policymakers dissented from the majority at the July meeting, advocating for cuts instead.

Fed Governor Michelle Bowman reaffirmed her position in a Saturday speech, stating that the July jobs report “had underscored her worries around the state of the labor market.” She added, “In effect, she argued, the softness in the jobs picture has outweighed any fears around spiking price gains.”

These remarks align with President Trump’s ongoing calls for swift Fed rate cuts—a stance that has made Fed Chair Jerome Powell a frequent target of the president’s criticism and raised questions about the central bank’s independence.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.