US stock futures traded lower Monday morning as investors positioned themselves ahead of a potentially market-moving week highlighted by critical earnings reports and a closely watched speech from Federal Reserve Chairman Kevin Warsh. As of 8:00am Eastern Time, S&P 500 futures declined 0.2% after touching session lows around negative 0.4% earlier, while Nasdaq futures dropped 0.4% amid weakness in technology stocks.
Global markets reflected the cautious sentiment, with European stocks sliding and South Korea’s Kospi suffering the steepest losses in Asia, plunging 3.1%. Memory and semiconductor stocks faced particular pressure, with shares of SK Hynix falling more than 3%, contributing to broader weakness in the artificial intelligence theme across international markets. The selloff in tech dragged Mag 7 stocks into mixed territory during premarket trading, with Alphabet down 0.3%, Tesla down 0.3%, and Nvidia slipping 0.2%.
Nvidia’s upcoming earnings report has emerged as the week’s focal point for technology investors, with the chipmaker’s results expected to provide crucial insight into the sustainability of the AI-driven rally that has powered markets higher. Market participants are also monitoring earnings from Marvell Technology, while defensive sectors showed relative strength compared to cyclical stocks, with the notable exception of materials as metals and miners extended their bullish run.
Beyond corporate earnings, investors face a packed economic calendar featuring July personal income and spending data including PCE price indexes, housing data, and regional Federal Reserve activity indicators. Chairman Warsh’s speech Friday at 10am at the Jackson Hole Symposium has emerged as the macro focus for the week, though recent CPI and PPI prints have somewhat reduced concern around the PCE data. Bond yields declined 3 to 4 basis points across the curve as the dollar strengthened against G7 currencies, while commodity markets showed mixed performance with oil and agricultural products declining but gold and base metals attracting buying interest.
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