Nvidia Earnings Report and Fed Speech in Focus as Chipmakers Take a Hit

Stocks are set to open lower on Wall Street as chipmakers come under pressure in pre-market trading. The S&P 500 E-Mini futures are down -0.19%, and the Nasdaq 100 E-Mini futures are down -0.59%. Chip and AI infrastructure stocks, such as Nvidia, Samsung Electronics, Alibaba Group, and SoftBank Group, were among the biggest losers.

Nvidia's chip prices are set to increase by over 15% due to surging memory costs, rekindling concerns about the sustainability of the AI spending boom. The development also threatens returns for companies pouring massive sums into AI technology.

This week, market participants will focus on Nvidia's earnings report, Federal Reserve Chairman Kevin Warsh's speech at Jackson Hole, and a slew of U.S. economic data releases. The July reading of the core personal consumption expenditures price index, the Fed's preferred inflation gauge, is expected to rise +0.2% m/m in July.

Minneapolis Fed President Neel Kashkari highlighted concerns over potentially persistent inflation on CBS's Face the Nation on Sunday, but stopped short of saying he would again support a rate increase in September.