U.S. stock futures decline ahead of Nvidia’s quarterly results, with investors assessing AI spending sustainability amid geopolitical tensions.
U.S. equity futures slipped in early trading as Nvidia’s upcoming earnings report on Wednesday fueled caution. Nasdaq 100 futures fell 0.6%, while S&P 500 futures dropped 0.2%, reflecting concerns over whether AI-driven growth can justify elevated valuations.
Investors are closely watching demand trends from major tech firms, particularly their spending on AI infrastructure. Nvidia’s results will serve as a key indicator for the broader sector, given its dominance in AI processors. Rising server costs have also raised questions about the long-term economics of AI investments.
Geopolitical tensions, including U.S.-Iran sanctions, and anticipation of Federal Reserve Chair Jerome Powell’s Jackson Hole speech added to market uncertainty.