Tech led US stock futures higher on Monday, trying to revive a rally stalled by doubts about Federal Reserve interest-rate cuts as investors looked ahead to this week’s crucial monthly jobs report.
Nasdaq 100 futures (NQ=F) rose roughly 0.6%, while those on the S&P 500 (ES=F) added 0.3%. Contracts on the Dow Jones Industrial Average (YM=F), which includes fewer tech stocks, traded broadly flat.
Wall Street is already getting set for Nvidia’s (NVDA) earnings on Wednesday, always an intensely scrutinized event. But the stakes are even higher this time amid doubts about Big Tech valuations and hefty AI spending. The chipmaker’s results and outlook will test faith on Wall Street that earnings will continue to drive stock gains and that the tech sell-off is a blip.
On the plus side, Berkshire Hathaway (BRK-B) disclosed it has taken a nearly $5 billion stake in Alphabet (GOOG, GOOGL). The move — likely one of the last under Warren Buffett’s leadership — is a rare tech bet by the conglomerate, one that markets will set against AI trade concerns. The Google parent’s stock popped 5% before the bell.
Investors are hoping to get an official snapshot of the labor market with the long-awaited release of September’s jobs report on Thursday. But a full return to a complete slate of economic data remains up in the air, even after the federal shutdown ended. This week’s delayed monthly picture of the US jobs market will come under high scrutiny, as the more cautious tone struck by Federal Reserve officials recently throws doubt on the central bank’s rate move next month.
In earnings this week, investors will get fresh insight into consumer strength as retailers led by Walmart (WMT) report. Home Depot (HD), Target (TGT), Lowe’s (LOW), and Gap (GAP) are others on this week’s docket.
Bitcoin (BTC-USD), meanwhile, is serving as a health check for the crypto market at large. The price of the cryptocurrency has dropped 30% in a little over a month, from a record high of over $126,000 to below $94,000 per token. Over the weekend, bitcoin briefly erased its gains this year, which were sparked by the Trump administration’s more crypto-friendly stance — a sign that investors are shifting to a risk-off mindset.
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Premarket trending tickers: Dell, Marriott Vacations, HP Inc. and Masimo
Dell (DELL) Stock fell 5% in premarket trading on Monday after Morgan Stanley cut ratings on several major technology hardware makers, including Dell.
Marriott Vacations Worldwide Corporation (VAC) shares rose 3% before the bell on Monday after it was revealed that the Independent Chairman of the Board, William Shaw, recently bought US$921k worth of stock, at a price of US$46.04.
HP Inc. (HPQ) stock fell 3%, alongside Dell, Morgan Stanley cut ratings for the technology stock.
Masimo (MASI) stock rose 3% before the bell after a US jury ruled that Apple (AAPL) must pay Masimo $634 million in smartwatch patent case
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Alphabet stock rallies after Berkshire reveals $4.9 billion stake
Alphabet’s (GOOG, GOOGL) shares rose 5.5% in premarket trading on Monday after Berkshire Hathaway (BRK-B) disclosed an almost $5 billion stake in the Google parent.
The move marks what could be one of the final major moves by the conglomerate under the leadership of Warren Buffett, who is stepping down from his duties as chairman and CEO at the end of the year.
Reuters reports:
A filing on Friday showed that Berkshire owned 17.85 million shares in Google’s parent as of September 30. As of the stock’s last close, the stake would be worth $4.93 billion, according to Reuters’ calculations.
Berkshire’s move comes amid growing concerns over Big Tech’s heavy AI spending that intensified after Michael Burry, known for “The Big Short”, deregistered his hedge fund last week following his recent criticism of leading AI companies. …
It was unclear whether Buffett, his portfolio managers Todd Combs and Ted Weschler or [next CEO Greg] Abel made the specific purchase, though Buffett typically oversees the larger investments.
Read more here.
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‘Hold your ground’: Wall Street strategists say tech stock sell-off is a short-term blip as earnings bull case remains intact
Yahoo Finance’s Allie Canal reports:
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Japanese retail, tourism stocks fall after Beijing travel warning
Some of Japan’s biggest tourism and retail-related stocks slumped after China warned its citizens against traveling to and studying in the country, amid a deepening diplomatic spat between the nations.
Bloomberg reports:
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Oil drops as Russia opens up key port after week closure
Bloomberg reports:
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