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Investing.com-- U.S. stock index futures steadied on Monday evening following a negative session on Wall Street, as investors dumped technology stocks ahead of key earnings from bellwether Nvidia.
Appetite for risk-driven assets was also constrained by growing concerns over a cooling U.S. economy, as well as fears of more trade tariffs under President Donald Trump. Trump on Monday signaled that 25% tariffs on Mexico and Canada will take effect from next week, as planned.
S&P 500 Futures steadied at 6,002.50 points, while Nasdaq 100 Futures fell 0.1% to 21,401.0 points by 18:40 ET (23:40 GMT). Dow Jones Futures rose 0.1% to 43,578.0 points.
Tech weakens; Nvidia to provide more cues on AI
Tech stocks were the biggest weight on Wall Street, with NVIDIA Corporation (NASDAQ:NVDA) losing another 3%.
The company is set to report its quarterly earnings after the market close on Wednesday, with focus squarely on whether it continued to see outsized demand from the artificial intelligence industry.
The company sells the most advanced AI chips in the market and is regarded as a barometer of demand for the fast-growing technology.
But the stock was hit with an extended sell-off in recent sessions, as investors locked-in a stellar run over the past two years.
Nvidia and broader tech stocks were also dented by growing questions over future capital investment in AI infrastructure, especially after the release of China’s DeepSeek last month.
Microsoft Corporation (NASDAQ:MSFT)- one of the biggest investors in AI infrastructure- fell 1% on Monday after TD Cowen said the company had cancelled several data center leases- a sign that its appetite for AI and cloud capacity may be cooling.
Still, Microsoft and Wall Street’s other AI “hyperscalers” have signaled that they will continue spending hundreds of billions of dollars on building AI infrastructure in 2025- a scenario that benefits Nvidia.
Apple Inc (NASDAQ:AAPL) said on Monday it will spend $500 billion over the next four years to boost its AI, engineering, and manufacturing capabilities in the U.S.
Wall St eases amid economic, tariff jitters
Wall Street indexes closed lower on Monday, extending steep losses from the prior session as tech losses weighed.
Sentiment was also dented by concerns over a cooling U.S. economy, especially following weak readings on consumer sentiment.
The threat of increased U.S. trade tariffs and a brewing global trade war remained in play, as Trump reiterated his threats of more tariffs.
The S&P 500 fell 0.5% to 5,983.49 points, while the NASDAQ Composite slid 1.2% to 19,286.93 points. The Dow Jones Industrial Average closed up 0.1% at 43,461.95 points.