Stock Futures Show Little Change as Investors Weigh Market Risks
Stock futures show minimal movement Monday night as investors assess the risks of equities trading near all-time highs. Futures tied to the Dow Jones Industrial Average slipped 18 points, or 0.04%, while S&P 500 futures fell 0.04% and Nasdaq 100 futures mirrored the slight decline. Despite the modest after-hours changes, the three major indexes recorded consecutive record closes during the regular session, with the S&P 500 hitting a three-day winning streak.
Market gains accelerated late in the trading day after Nvidia shares surged nearly 4% following the company’s announcement that it plans to invest $100 billion in OpenAI to expand data center infrastructure. This move underscores the market’s ongoing enthusiasm for artificial intelligence and technology-driven growth, though questions remain about whether AI can continue to fuel equity gains at current valuations.
Joe Davis, Vanguard’s chief global economist, highlighted the combination of AI adoption and the Federal Reserve’s recent interest rate cut as key drivers behind higher market multiples. “Fundamentals remain solid, but elevated valuations mean markets are more sensitive to bad news,” Davis said. He emphasized that progress on inflation or continued growth in the second half of the year would be crucial for sustaining current market levels. Investors are closely watching the upcoming personal consumption expenditures price index report on Friday, which could influence expectations for the Fed’s monetary policy trajectory.
Stock Futures Show
Stock futures show traders remain cautious amid rising geopolitical and fiscal concerns. The increasing probability of a U.S. government shutdown after the Senate rejected temporary funding measures has added uncertainty. Historically, markets have brushed off shutdown risks, but the current economic backdrop—one of the weakest in over twenty years—may amplify market sensitivity.
Nvidia’s investment plans have also drawn attention to the growing electricity demands of AI technologies. Stocks positioned to benefit from higher power consumption rallied during the session. Constellation Energy jumped 4.9%, Vistra Energy climbed 3.1%, Oklo rose 3.8%, and Talen Energy added 1.5%, with several hitting intraday highs. However, most of these gains retraced slightly in extended trading, showing that stock futures show the impact of after-hours profit-taking.
In contrast, Firefly Aerospace shares fell roughly 12.5% after posting wider quarterly losses and lower-than-expected revenue. The rocket manufacturer reported a Q2 loss of $80.3 million compared with $58.7 million in the same period last year, with revenue falling to $15.5 million versus analyst expectations of $16.8 million. Despite these results, Firefly maintains a $1.1 billion backlog and a strong pipeline of upcoming spacecraft projects, including the Blue Ghost lunar lander.
Shortly after 6 p.m. ET, U.S. stock futures show only modest movements, reflecting cautious sentiment. The S&P 500 was down less than 0.1%, the Nasdaq Composite remained essentially flat, and the Dow Jones Industrial Average edged lower by 22 points, or about 0.1%. The market’s restrained after-hours activity demonstrates how investors are carefully weighing high valuations, AI-driven optimism, and broader economic risks as the trading week progresses.
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