US stock futures pointed to a higher open on Monday, with Dow Jones Industrial Average futures advancing roughly 470 points, or 0.9%, while S&P 500 futures gained 0.5%. However, a sharp decline in Nvidia shares ahead of the bell threatened to stall a tentative recovery in technology stocks, leaving Nasdaq futures little changed.
Nvidia fell nearly 5% in pre-market trading after its board announced an independent investigation involving chief executive Jensen Huang. The inquiry relates to reports that Huang was targeted by a foreign intelligence effort. Nvidia stated it had no reason to believe national security or company secrets were compromised and reaffirmed confidence in its CEO, who has agreed to cooperate. The announcement interrupted a rebound that saw Nvidia gain 2.78% on Friday after plunging 9.26% on Thursday.
Asia's rebound remains uneven
Friday's technology-stock recovery helped lift Asian markets on Monday, but the gains were not uniform. Japan's Nikkei 225 climbed 2.33%, and Taiwan's Taiex jumped 4.94%. In contrast, South Korea's KOSPI closed 0.81% lower at 5,018.85, surrendering an intraday advance of more than 2% as foreign investors sold shares. The divergence underscores continuing selectivity among buyers after last week's sell-off.
Inflation data could revive December rate hike bets
Investors are turning their attention to Tuesday's US Consumer Price Index, scheduled for 8:30 am Eastern. The report follows stronger-than-expected employment figures: employers added 165,000 jobs in October, and the unemployment rate eased to 4.1%. After Friday's release, the market-implied probability of a December quarter-point rate increase rose to roughly 80%, and a hot CPI reading could solidify those expectations.
Berkshire buybacks and a major AI earnings week
Berkshire Hathaway repurchased $9.6 billion of its own stock in the third quarter and about $2 billion more in October under chief executive Greg Abel. Operating earnings nevertheless fell nearly 6% to $12.71 billion as insurance results weakened. The focus then shifts to CoreWeave's Tuesday earnings, followed by Nebius, Cisco, and Applied Materials later this week.
Oil retreats, but shipping risks persist
Oil prices slipped on Monday, with Brent trading around $97 a barrel and West Texas Intermediate near $90, after President Donald Trump indicated renewed US attacks on Iran were unlikely if negotiations progressed. The retreat followed an especially sharp weekly fall in Brent, offering relief to airlines and transport firms. Yet the conflict remains unresolved, and further incidents involving vessels near the Strait of Hormuz underline continuing supply risks.
Overall, the market's mixed start reflects a delicate balance between optimism over a potential Fed pause and lingering concerns about tech valuations and geopolitical tensions. The upcoming CPI report and a busy week of earnings will likely set the tone for the remainder of the session.
This article is for informational purposes only and does not constitute financial advice.
