Wall Street gears up for a potential rebound

As Wall Street gears up for a potential rebound, stock market futures showed positive movement on Sunday evening following a challenging close last week. The futures for the Dow Jones Industrial Average climbed by 125 points, marking a 0.3% increase. Similarly, S&P 500 futures saw a rise of over 0.3%, while Nasdaq 100 futures experienced a 0.4% uptick.

This optimistic outlook comes after a rough patch where major indexes suffered significant declines. By the week’s end, the Dow had dropped 2.51%, recording its most substantial weekly downturn since October. Both the S&P 500 and Nasdaq Composite also fell, by 1.66% and 2.51% respectively, finishing the week in the red.

The upcoming week holds critical insights for investors, with key corporate earnings and economic reports on the horizon. Notably, earnings disclosures from major retailers like Home Depot and Lowe’s are expected on Tuesday and Wednesday. These reports are anticipated to provide a clearer picture of the current state of U.S. consumer behavior.

Additionally, the spotlight will be on Nvidia, a leading figure in the artificial intelligence sector, as it releases its earnings on Wednesday. This report is particularly awaited in the wake of developments surrounding the DeepSeek large language model from China, which has stirred uncertainties about the future profitability of AI-related enterprises.

Lale Akoner, a global market analyst at eToro, highlighted the significance of the upcoming Nvidia earnings report. “It’s definitely one of the top things that the markets will be looking at [this] week,” Akoner stated. “They really want to see whether the DeepSeek news is solid in terms of disrupting these types of companies’ margins in the future.”

As the week concludes, investors will also turn their attention to the January reading of the personal consumption expenditures index, which serves as the Federal Reserve’s favored inflation gauge.

Despite last week’s downturn, it’s noteworthy that market indexes remain within 4% of their record highs, suggesting a resilient undercurrent despite concerns about U.S. economic growth. As Wall Street prepares for a potentially pivotal week, the interplay of earnings reports and economic indicators will be crucial in shaping investor sentiment and market trajectories.