Nasdaq 100 futures showed gains on Monday as investors geared up for Nvidia's earnings report later this week, with a particular focus on any updates regarding demand for its Blackwell AI chips. Nvidia, a major player in the artificial intelligence space, is expected to provide insights into the performance of its AI-driven product lineup, and any guidance on the chipmaker’s future outlook will be closely watched by market participants.

In addition to Nvidia, several other large companies are set to report their earnings this week, including Walmart, Lowe's, Palo Alto Networks, Target, and Intuit. These reports will provide a snapshot of how various sectors are performing and could influence overall market sentiment.

While Nasdaq 100 futures gained, the broader market saw mixed performance. S&P 500 futures also traded higher, indicating some optimism in the market, but Dow futures were little changed, reflecting a more cautious outlook. The previous week saw the major US stock indices pull back from their all-time highs as the post-election rally lost momentum. The Dow Jones dropped 1.24%, the S&P 500 fell 2.08%, and the Nasdaq Composite declined by 3.15%. The retreat came after Federal Reserve Chair Jerome Powell signaled that the central bank is in no hurry to cut interest rates, citing the strength of the economy, a resilient labor market, and ongoing inflationary pressures. In response, investors adjusted their expectations, reducing the number of rate cuts anticipated for 2024.

Meanwhile, the dollar index held steady around 106.6 on Monday, remaining near its highest levels in two years. This strength was driven by expectations of fewer Federal Reserve interest rate cuts and continued optimism about the US economy’s outperformance, particularly under a potential Trump presidency. Powell’s comments last week, emphasizing no immediate plans for rate cuts, along with stronger-than-expected reports on retail sales and inflation, reinforced the market's hawkish outlook for the Fed's policy.

Although markets are still pricing in a quarter-point rate cut in December, expectations for further reductions in rates through late 2024 have been scaled back. The market now anticipates just 77 basis points in rate cuts by the end of next year, down from over 100 basis points just a few weeks ago.

In the Treasury market, the 10-year US Treasury yield held steady at 4.44%, staying near a five-month high. This reflects market expectations for fewer interest rate cuts and growing optimism about US economic performance.

Investors are also watching developments around Donald Trump’s potential pick for Treasury Secretary, with Howard Lutnick, CEO of Cantor Fitzgerald, and investor Scott Bessent emerging as leading candidates for the role. Any updates on this front could add to the ongoing volatility in the market as traders try to gauge the future direction of US fiscal and economic policy.

As the week progresses, market participants will closely monitor these earnings reports, along with any updates on the Fed's stance and economic data, to assess how they might influence the broader market outlook.

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The Current active IPO are Zinka Logistics Solution (Black Buck), and Onyx Biotec.

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