Dow Jones Futures Fall As Inflation Data Looms; Nvidia Slides To Key Level

U.S. stock futures fell on Tuesday as investors braced for crucial inflation data later this week, which could influence the Federal Reserve's upcoming interest rate decision. The Dow Jones Industrial Average, S&P 500, and Nasdaq 100 futures all traded lower, with the S&P 500 and Nasdaq 100 futures down around 0.1% each, and the Dow Jones Industrial Average futures down about 0.2%.

The consumer price index (CPI) report for November, due on Wednesday, is expected to show a slight increase in headline inflation last month. This data will be one of the last major datasets the Fed considers before its Dec. 17-18 meeting, where it is widely expected to deliver another 25 basis point interest rate cut. However, bets indicate that the central bank is likely to pause its easing cycle in January, as a host of Fed officials hinted at a slower pace of monetary policy easing last week.

Nvidia (NVDA) shares slid to a crucial support level on Monday, falling more than 2% after Chinese regulators announced an investigation into the company over potential anti-monopoly law violations. The AI chipmaker's stock has been a bellwether for the AI trade, up over 180% in 2024, but the recent geopolitical headwinds and regulatory pressures have raised concerns about its dominance in the AI chip market.



The broader tech sector may also face headwinds due to geopolitical risks, but strong corporate earnings and technological advancements continue to support the bull market. Investors should monitor the upcoming inflation data and the Fed's response, as well as geopolitical developments, to assess the potential impact on Nvidia and the tech sector as a whole.



In conclusion, the Dow Jones futures fell on Tuesday as investors awaited crucial inflation data, which could influence the Fed's interest rate decision. Nvidia shares slid to a key support level amidst geopolitical headwinds and regulatory pressures. Investors should closely monitor the inflation data and geopolitical developments to assess the potential impact on Nvidia and the broader tech sector.