Nasdaq 100 futures climb 0.6%. S&P 500 futures rise 0.5%.

Nasdaq 100 futures climb 0.6%. S&P 500 futures rise 0.5%.

US stock indices are experiencing a positive start to the week as investors remain cautiously optimistic about ongoing trade talks and the potential impact of artificial intelligence (AI) advancements. The Nasdaq 100 futures have climbed 0.6%, while S&P 500 futures have risen 0.5%.

The recent upbeat economic data and renewed optimism around US-China trade negotiations have helped counter concerns raised by the OECD regarding the potential economic harm from President Trump's tariffs. The S&P 500 (^GSPC) closed up 0.6%, the Dow Jones Industrial Average (^DJI) added roughly 0.5%, and the tech-heavy Nasdaq Composite (^IXIC) eased off session highs but still climbed around 0.8% [1].

Nvidia (NVDA) continues to lead the market, overtaking Microsoft (MSFT) to become the world’s most valuable company. The AI chipmaker’s market capitalization climbed to $3.444 trillion, surpassing Microsoft’s $3.441 trillion. This surge in Nvidia's value is driven by investor enthusiasm around artificial intelligence and its recent performance in the market [1].

Trade talks between the US and China are currently taking place in London, with investors hopeful that progress on tariff relief or a broader deal could be within reach. This optimism is particularly evident in the tech sector, where Nvidia and other AI-focused companies have seen significant gains. The Russell 2000 (^RUT), which tracks smaller companies, also saw a boost, rising around 1.5% [1].

The OECD has slashed its outlook for global economic growth, citing the impact of Trump's trade policy on investment and confidence. The US economy is expected to slow from 2.8% growth last year to only 1.6% this year and 1.5% in 2026. However, the latest JOLTS report showed that job openings unexpectedly rose in April as tariff hikes took effect, signaling that the jobs market remains stable [1].

Apple's (AAPL) annual Worldwide Developers Conference (WWDC) also contributed to the positive sentiment. While the event was seen as a "yawner" by some analysts due to the lack of major AI breakthroughs, the company showcased a range of software updates and new features, which have been positively received by investors [2].

The market is now focused on upcoming inflation data and Federal Reserve commentary later this week, which could set the tone for the market heading into summer. Investors seem content to wait and watch, cautiously optimistic about the potential for further gains in the tech sector and the broader economy.

References:

[1] https://finance.yahoo.com/news/live/stock-market-today-dow-sp-500-nasdaq-rise-as-nvidia-jumps-to-highest-since-january-200301340.html

[2] https://www.proactiveinvestors.com/companies/news/1072613/s-p-500-notches-modest-gain-in-cautious-start-to-the-week-1072613.html