The Nasdaq Composite has dipped into negative territory for the year as technology stocks led a decline on Monday. Palantir, a key player in defense tech and artificial intelligence, continued its downtrend from last week, losing over 10%. Meanwhile, Microsoft experienced a 1% drop following a TD Cowen report indicating a reduction in data center spending. The S&P 500 and Nasdaq Composite both registered losses during Monday's regular trading session, dragging the indices into a third consecutive losing day.
Economists surveyed by Dow Jones anticipate the Conference Board's consumer confidence index will indicate a reading of 102.3 for February. This expectation follows January's reading of 104.1, suggesting a potential slip in consumer sentiment. The data arrives amidst broader economic uncertainties, with additional reports scheduled for release later this week. Notably, January's personal consumption expenditures price index, the Federal Reserve's favored measure of inflation, is set to be disclosed on Friday.
Futures tied to major indices opened roughly unchanged on Monday night following the day's trading activities. Futures linked to the Dow Jones Industrial Average rose by 48 points, or 0.1%, while those tied to the S&P 500 and Nasdaq-100 futures also showed slight increases of approximately 0.1%. Despite these marginal gains, the market remains cautious after last week's sell-off left the S&P 500 unable to rebound.
In anticipation of further company earnings reports, Nvidia saw a 3% decrease in its stock ahead of its quarterly results scheduled for release on Wednesday after the bell. Investors are also keen on other significant earnings announcements, including Home Depot's report due before the market opens on Tuesday.
Doug Clinton, managing partner at Deepwater Asset Management, commented on the current state of the artificial intelligence market despite recent declines in related stocks like Palantir.
"From our perspective, the AI trade is still real. I don't think this boom is over. I still think we have two to four years to go." – Doug Clinton, Deepwater Asset Management.
As Wall Street braces for more economic data and corporate earnings, there remains a palpable sense of caution among investors. The market's recent volatility highlights ongoing concerns about inflation and consumer confidence as key factors influencing future market directions.