U.S. stock index futures were little changed on Monday as investors braced for a busy week of economic data, trade policy deadlines, and geopolitical events, while major semiconductor firms fell after agreeing to a landmark revenue-sharing deal with Washington.
By 05:45 a.m. ET, Dow E-minis were up 98 points, or 0.22%, S&P 500 E-minis rose 6.25 points, or 0.10%, and Nasdaq 100 E-minis added 11.5 points, or 0.05%, as traders paused after a rally last week that delivered the strongest weekly performance in more than a month for both the S&P 500 and Nasdaq.
Semiconductor giants Nvidia and Advanced Micro Devices (AMD) fell 1% and 2% in premarket trading, respectively, following a Reuters report that the companies have agreed to pay the U.S. government 15% of revenue from sales of advanced computer chips to China. The move is tied to export license approvals for high-performance processors such as Nvidia’s H20, with the arrangement coming just ahead of Tuesday’s tariff deadline in the U.S.-China trade deal. Analysts warn that the agreement, a condition for maintaining Chinese market access, could strain economic ties while impacting supply chains.
Market sentiment was also shaped by anticipation of Tuesday’s consumer inflation report, which could influence the Federal Reserve’s interest rate path. After recent leadership changes at the Fed and signs of labor market weakness, traders are pricing in around 60 basis points of rate cuts by December, according to LSEG data. A better-than-expected earnings season and Bank of America’s latest fund manager survey showing renewed enthusiasm for mega-cap stocks further supported optimism.
In corporate moves, Apple shares edged down 0.7% after last week’s biggest gain in over five years, driven by new U.S. investment pledges. Sarepta Therapeutics slid 7.6% and Capricor Therapeutics fell 9% as news emerged that Dr. Vinay Prasad, a prominent critic of COVID-19 vaccine mandates, will return to the U.S. Food and Drug Administration, raising expectations of stricter scrutiny for gene therapies. Intel gained 1.6% following reports that CEO Lip-Bu Tan is set to visit the White House after President Trump called for his removal over alleged links to China.
On the geopolitical front, markets are watching an upcoming Friday meeting between President Donald Trump and Russia’s Vladimir Putin in Alaska, where the two leaders are expected to discuss a potential end to the war in Ukraine — a development that could have significant implications for global oil prices.
