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U.S. Stock Futures Stable Following Nvidia Sell-Off; Focus on Inflation

In the evening trading session on Monday, U.S. stock index futures showed minimal movement following widespread declines in technology shares, particularly Nvidia and its peers, which contributed to a mixed performance on Wall Street earlier in the day.

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Market Indices at Close (19:08 ET):

S&P 500 Futures: Flat at 5,517.25 points

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Nasdaq 100 Futures: Slightly up to 19,763.75 points

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Dow Jones Futures: Mildly higher at 38,868.0 points

Impact of Nvidia’s Performance:

Wall Street continued to reel from significant losses in Nvidia Corporation (NASDAQ: NVDA) and other prominent chipmaking stocks. Nvidia, in particular, faced steep selling pressure, declining by 6.7% during regular trading hours and extending losses by another 1.1% in after-hours trading. Despite recent setbacks, Nvidia has still seen a remarkable 138% increase in its stock price this year, buoyed by robust demand driven by artificial intelligence applications.

Sector Performance and Market Close:

The broader market indices reflected mixed sentiments:

The S&P 500 closed down by 0.3% at 5,447.87 points.

The NASDAQ Composite slid by 1.1% to 17,500.60 points.

Conversely, the Dow Jones Industrial Average outperformed, rising by 0.7% to reach a one-month high of 39,411.21 points, supported by strength in sectors outside of technology.

Focus on Inflation and Economic Data:

Investor attention remained fixed on upcoming economic data, particularly the Personal Consumption Expenditures (PCE) price index, scheduled for release on Friday. The PCE index serves as the Federal Reserve’s preferred gauge of inflation and is expected to provide insights into future interest rate decisions. Despite expectations of a slight cooling in inflation, the data is projected to remain above the Fed’s target range of 2% annually, potentially influencing market expectations regarding future rate cuts.

Aftermarket Moves:

Notable movements after market close included:

Footwear maker Birkenstock Holding Ltd (NYSE: BIRK), which declined by 5% following news of a significant shareholder planning to offload 14 million shares in a public offering.

SolarEdge Technologies Inc (NASDAQ: SEDG) dropped 13.4% after announcing plans to offer $300 million in new debt.

In summary, while U.S. stock futures indicated stability following Nvidia’s turbulent performance, market participants are cautiously awaiting inflation data that could shape future market dynamics amidst ongoing economic uncertainties.

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