Wall Street set for mixed open; Nvidia earnings, Fed policy in focus
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Nvidia falls after report Blackwell chips overheating
CVS Health gains on new board appointments in Glenview deal
Futures: Dow down 0.19%, S&P 500 down 0.01%, Nasdaq up 0.20%
Updated at 8:35 a.m. ET/1335 GMT
By Lisa Pauline Mattackal and Purvi Agarwal
Nov 18 (Reuters) - U.S. stock futures indicated a mixed opening on Monday as investors looked ahead to crucial corporate results, especially from AI-chip leader Nvidia, following Wall Street's slump the previous week.
Rising expectations that the FederalReserve will slowits pace of rate cuts and uncertainty over the impact of U.S. President-elect Donald Trump's cabinet appointments saw indexes slump on Friday. TheS&P 500 .SPX and the Nasdaq .IXIC notched theirworst weekly losses in more than two months.
The market has "gotten a bit nervous," said Robert Pavlik, senior portfolio manager at Dakota Wealth, citing changing expectations for monetary policy and Trump's cabinet appointments.
Results from Nvidia NVDA.O, which reports third-quarter earnings on Wednesday, will be crucial as investors assess if theoptimism around AI, responsiblefor much of markets' tech-driven rally this year, can be sustained.
Nvidia's shares fell 2.6% in premarket trading after a report said its new AI chips were overheating in servers. Its stock has nearly tripled in value this year and it is currently the world's most valuable company.
"I'm optimistic that they're going to continue to beat, but... optimism has been so high on that particular name (Nvidia) that you can't help but see some potential for a bit of a selloff," Pavlik said.
With the key holiday shopping season set to begin, results from major retailers including Walmart WMT.N, Lowe's Companies LOW.N and Target TGT.N this week will be closely watched to gauge the strength of the U.S. consumer.
Dow E-minis 1YMcv1 were down 82 points, or 0.19%, S&P 500 E-minis EScv1 were down 0.5 points, or 0.01% and Nasdaq 100 E-minis NQcv1 were up 41 points, or 0.20%.
Stock indexes have lost some of the sharp gains made in the wake of Trump's decisive victory, but Wall Street remains fairly well placed as 2024 winds down. The benchmark index has gained nearly 3% in November and 23% year-to-date.
Most othermegacaps edged higher, with Nasdaq 100 futures gaining ground after the index .NDX fell for five consecutive sessions. Alphabet GOOGL.O rose 0.6% andAmazon.com AMZN.O was up 0.4%.
Tesla TSLA.O jumped 5.8% after a report that members of Trump's transition team were seeking to ease U.S. rules forself-driving cars.
Chicago Fed President Austan Goolsbee is scheduled tospeak on the day, the first of several central bank officials slated this week. Their comments will be followed closely after Chair Jerome Powell said the Fed was in no hurry to cut rates.
Traders are pricing in a 41.6% chance the Fed will keep rates on hold in December, according to the CME FedWatch.
CVS Health's CVS.N shares gained 2.3% after the health insurer said it would add four new members to its board in an agreement with Glenview Capital Management.
Nvidia is beating revenue estimates by smaller margins https://reut.rs/4exccl1
Reporting by Lisa Mattackal and Purvi Agarwal in Bengaluru; Editing by Pooja Desai
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