Stocks Open Higher to Kick Off the Week as NVIDIA and Key Data Loom

Technology stocks helped lift US equity futures at the start of the week, with investors gearing up for Nvidia Corp.’s earnings and the long-awaited release of key economic reports.

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After days of choppy trading, risk sentiment firmed, giving S&P 500 futures a 0.5% boost. Nasdaq 100 contracts climbed 0.7%, supported by widespread premarket gains among the Magnificent Seven. Bitcoin also bounced back after briefly wiping out its gains for the year. Meanwhile, Treasuries firmed across the curve, and the dollar drifted slightly higher.

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All eyes are on Nvidia, the market’s key benchmark for artificial intelligence, which is set to announce quarterly results on Wednesday. Investors will also dissect earnings from Target Corp. and Walmart Inc. to gauge consumer resilience heading into the final stretch of the year. At the same time, federal statistical agencies are beginning to clear a pileup of delayed releases, including September’s employment data.

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Government operations only restarted late last week after a 43-day shutdown, leaving policymakers with limited insight into the state of the economy. The data blackout has raised concerns within the Federal Reserve, with several officials warning that the lack of timely information could complicate discussions around a potential rate cut in December.

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“Even though it’s somewhat old at this point, the September payrolls report still matters because the delayed data has created uncertainty for both markets and policymakers,” said Ulrich Urbahn, head of multi-asset strategy and research at Berenberg. “These figures will be key in clarifying economic momentum and shaping expectations for Fed rate cuts.”

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After last week’s turbulence driven by worries that this year’s equity surge has become too reliant on a small cluster of mega-cap tech names markets are finally finding some breathing room. Investors remain uneasy that the rapid, debt-heavy push to expand AI infrastructure could be fueling a bubble, particularly as tech giants continue to dominate performance.

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Concerns around a potential hawkish shift from the Federal Reserve have added to those fears. Traders have already scaled back expectations for a December rate cut, assigning odds of less than 50% after several officials indicated that additional easing is far from guaranteed. The Fed will release minutes from its Oct. 28-29 meeting on Wednesday, providing more clarity on what drove the unusual division among policymakers.

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Later Monday, voting members including Philip Jefferson, Christopher Waller and John Williams are scheduled to give remarks that could further guide market expectations.

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Despite the growing debate around the Fed’s next move, some strategists remain upbeat about the broader market backdrop.

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“I still think the Fed could deliver a cut in December, though that could introduce some volatility,” Adrian Zuercher, co-head of Global Asset Allocation at UBS Global Wealth Management, said in an interview. “Overall, market conditions remain solid, and I believe equities have room to climb from here.”

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As investors await major earnings and long-delayed data releases, this week is shaping up to be a pivotal one for gauging both economic direction and market sentiment. With tech stocks back in the driver’s seat and uncertainty swirling around monetary policy, traders are preparing for potential swings but for now, the tone has shifted slightly in favor of the bulls.

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