U.S. futures inch higher, Nvidia to report this week - what's moving markets

Investing.com -- U.S. stock futures edge higher after the Dow ended trading on Friday above the 40,000 mark for the first time. Nvidia (NASDAQ:NVDA) is due to headline this week's corporate earnings calendar, with the maker of artificial intelligence-optimized chips expected to report another quarter of surging revenues. Elsewhere, several Fed officials are set to speak on Monday, as investors attempt to gauge to road ahead for the central bank's monetary policy.

1. Futures point higher

U.S. stock futures were broadly higher on Monday, suggesting an extension in a rally in the prior session that drove the blue-chip Dow Jones Industrial Average to its first-ever close above the 40,000 level.

By 03:48 ET (07:48 GMT), the Dow futures contract had gained 19 points or 0.1%, S&P 500 futures had risen by 4 points or 0.1%, and Nasdaq 100 futures had advanced by 22 points or 0.1%.

Recent data indicating a possible cooling in the U.S. economy have alleviated some persistent inflation concerns, fueling hopes that the Federal Reserve will start to bring interest rates down from more than two-decade highs as soon as September. Along with the Dow, the benchmark S&P 500 and tech-heavy Nasdaq Composite all touched record marks last week.

The durability of the strength on Wall Street will likely be tested by a fresh batch of corporate results this week, including quarterly returns from artificial intelligence darling Nvidia (see below). Durable goods and consumer sentiment data will also be in focus as markets hunt for more evidence that growth is moderating enough to give the Fed justification for rolling out rate cuts this year.

2. Nvidia earnings ahead this week

Nvidia is set to highlight the earnings calendar this week, with traders keen to see if the maker of AI-specialized graphics processing units will once again post spiking revenues at its all-important data center unit.

Shares in the company have rocketed higher by nearly 92% this year, making it one of the focal points of the AI boom. In February, Nvidia said it expects revenues to jump to $24 billion in the first quarter, with Chief Executive Jensen Huang noting that he believed "accelerated computing and generative AI have hit the tipping point."

Comments from Huang will also likely be in the spotlight. Nvidia faces competition from rival chipmakers like Intel (NASDAQ:INTC) and Advanced Micro Devices (NASDAQ:AMD), as well as supply chain constraints and geopolitical tensions that threaten AI chip exports from the U.S. to China. Meanwhile, major tech players like Google-parent Alphabet (NASDAQ:GOOGL) and e-commerce titan Amazon (NASDAQ:AMZN) are reportedly beginning to build their own AI chips in-house, potentially limiting their need for Nvidia's chips.

3. Fed speakers, minutes on tap

Several Fed officials are due to deliver speeches on Monday that may provide insight into the path ahead for the central bank's moentary policy.

Fed board members Christopher Waller, Philip Jefferson and Michael Barr are scheduled to speak at separate events.

Later in the week, the Fed is set to publish the minutes from its April 30-May 1 meeting, when Chair Jerome Powell indicated that rates are likely to remain higher for longer because of lingering inflationary pressures.