US stock futures experienced a decline on Monday following an unsettling sell-off in gold and silver that left investors on edge. With technology stocks taking a leading downturn in response to ongoing concerns over artificial intelligence trade and uncertainty regarding Federal Reserve policies, market sentiment appeared cautious. Nasdaq 100 futures dropped 0.6%, while S&P 500 futures fell by approximately 0.3%. Dow Jones Industrial Average contracts remained nearly unchanged but hovered just below the flat line.
The declines in future contracts came after a significant reversal on Wall Street late last week, highlighting the uncertainty permeating the market as it enters a new month. This uncertainty especially surrounds Nvidia, a key player in the tech industry, as CEO Jensen Huang played down the company’s ambitious plan to invest $100 billion in OpenAI. This clarification followed a report that suggested the investment initiative is currently stalled, contributing to the volatility in the tech sector.
Earnings reports this week from prominent companies, including Amazon, Alphabet, and Advanced Micro Devices, are expected to shape market movements. Disney and Palantir are also set to release their quarterly results on Monday, adding to the wave of corporate reports that could further influence stock prices.
Precious metals have recently seen dramatic price fluctuations, a trend that continued into Monday. Following a significant decline on Friday, which witnessed silver’s steepest single-day drop in history, gold and silver prices attempted to recover early Monday after a tumultuous session in Asian markets. Bitcoin also faced challenges, sinking below the $80,000 mark for the first time since April, with current trading just below $78,000 per token.
The dollar gained ground against major currencies, particularly those tied to commodities, following the turmoil in the precious metals market. Investors are now looking ahead to President Trump’s nomination of Kevin Warsh to lead the Federal Reserve, which is seen as a move toward potentially reducing the Fed’s balance sheet. This nomination has led to speculation regarding the Federal Reserve’s future interest rate plans, with many traders anticipating two rate cuts by year-end.
On the macroeconomic front, upcoming updates on manufacturing activity set for later Monday aim to offer insights that will lead into Friday’s crucial jobs report. Estimates suggest payrolls increased by 65,000 in January, while the unemployment rate is predicted to remain stable at 4.4%.
Despite the turbulent atmosphere, strategists at Goldman Sachs reported a positive outlook for US corporate earnings, with more than half of the earnings released thus far surpassing analyst expectations—well above the historical average of 40%.
Additional market movers included Oracle’s announcement of plans to raise up to $50 billion for cloud expansion and a significant drop in oil prices amidst easing geopolitical risks related to Iran. Following President Trump’s reassurance about US negotiations with Iran, oil futures plummeted, with Brent crude falling over 5% and trading near $66 per barrel.
In premarket trading, Estée Lauder shares rose by 6% following news of a new partnership, while GameStop continued its upward momentum, influenced by CEO Ryan Cohen’s acquisition plans. Conversely, Newmont’s stock declined by over 3% in the wake of falling gold prices.
Overall, the financial markets are bracing for another week of volatility, as they digest earnings reports, economic data, and shifting geopolitical narratives.
