Wall Street Set to Open Higher as Tech Stocks Rebound
Wall Street is set to open higher on Tuesday as technology stocks recover from a recent selloff ahead of Nvidia's quarterly results and an inflation report that will shape interest rate expectations.
The gains could ease investor concerns sparked by a bond market rout that has pushed yields higher and pressured equities. Chipmakers Intel and Micron are leading the charge, up 3.5% and 2.5%, respectively, while data-storage companies Western Digital and Sandisk have risen 3% and 3.7%, respectively.
Geoff Strotman, head of Segal Marco Advisors' Alpha Investment Research Group, said, 'The market's going to be more volatile but it's still early in the AI story.' He noted that valuations are a concern, but earnings are strong.
Nvidia and Meta have gained 1.3% and 0.9%, respectively, before the bell, while Dow E-minis are up 279 points, or 0.52%, S&P 500 E-minis are up 36 points, or 0.47%, and Nasdaq 100 E-minis are up 274.25 points, or 0.94%.
The market is bracing for a slew of catalysts this week, with Nvidia's quarterly report scheduled and the U.S. personal consumption expenditures data due on Wednesday. The chip giant is expected to show that AI-driven demand remains robust, but any signs of slowing growth could reignite concerns over stretched valuations.
Treasury Secretary Scott Bessent said countries continuing to trade with Iran could be forced out of the dollar-based finance system, but investors are shrugging off the latest U.S. economic threats against Iran. The PCE report could provide greater clarity on price pressures in the economy after an in-line consumer inflation reading earlier this month tempered bets on an interest-rate hike by the Federal Reserve in September.