U.S. stock index futures are signaling a weaker start to Monday’s session, pointing to potential losses after markets ended last week on a mixed footing.
A key drag on sentiment is a decline in Nvidia (NASDAQ:NVDA), with shares of the AI heavyweight down about 1.6% in premarket trading.
The move follows a Wall Street Journal report suggesting Nvidia’s proposed investment of up to $100 billion in OpenAI — intended to support the training and operation of next-generation artificial intelligence models — has stalled. Citing people familiar with the matter, the WSJ said there are internal doubts at Nvidia about the deal.
More broadly, unresolved trade tensions and renewed uncertainty around U.S. monetary policy are adding to signs of investor caution.
That said, trading volumes could remain relatively light as markets look ahead to Friday’s closely watched U.S. jobs report from the Labor Department. The data is expected to show payroll growth of about 70,000 in January, up from 50,000 in December, and could influence expectations for interest rate policy.
Wall Street finished mostly lower on Friday after fluctuating throughout the session but retaining a negative tone. Following a partial rebound from an early selloff on Thursday, all three major indexes closed firmly in the red.
The Nasdaq led declines, falling 223.30 points, or 0.9%, to 23,461.82. The Dow Jones Industrial Average slipped 179.09 points, or 0.4%, to 48,892.47, while the S&P 500 dropped 29.98 points, or 0.4%, to 6,939.03.
For the week as a whole, performance was mixed. The S&P 500 gained 0.3%, while the Nasdaq edged down 0.2% and the Dow lost 0.4%.
Some of the pressure on equities followed renewed inflation worries after the Labor Department reported a stronger-than-expected rise in producer prices for December. The producer price index for final demand increased 0.5% in December, after a 0.2% rise in November, compared with expectations for another 0.2% gain.
On a year-on-year basis, producer prices were up 3.0% in December, unchanged from November, defying forecasts for a slowdown to 2.7%.
Fresh tariff threats from President Donald Trump also weighed on sentiment. Trump warned of a potential 50% tariff on aircraft sold in the U.S. by Canada, citing its refusal to certify certain Gulfstream jets. He also signed an executive order to impose tariffs on goods from countries that sell or supply oil to Cuba.
Investors were additionally digesting Trump’s announcement that he intends to nominate former Federal Reserve Governor Kevin Warsh to replace Fed Chair Jerome Powell.
“While the markets are probably relieved that a well-known, former Fed official has been nominated as the next Fed chair, they are also likely to pivot to concerns that he won’t be as dovish as they were expecting the new chair to be,” said Chris Zaccarelli, Chief Investment Officer for Northlight Asset Management.
Sector-wise, gold stocks were among the hardest hit, with the NYSE Arca Gold Bugs Index plunging 12.6% amid a sharp drop in bullion prices. Semiconductor and computer hardware stocks also came under heavy pressure, contributing to the Nasdaq’s decline.
Steelmakers, airlines, biotechnology and housing-related stocks also posted notable losses, moving lower alongside most major sectors.