U.S. stock index futures traded in a narrow range during the session, with a clear tone of caution ahead of the highly anticipated Nvidia earnings release, as well as President Donald Trump’s upcoming address. This wait and see stance kept liquidity restrained despite the gains recorded on Wall Street in the previous session. Technology shares regained momentum following a sharp correction driven by exaggerated concerns over the impact of the artificial intelligence boom on software companies. As those fears eased, a notable rebound emerged, particularly within the semiconductor space.
In the background, the administration’s decision to impose a 10% tariff, lower than earlier levels under discussion, helped calm part of the anxiety surrounding trade policy. This came after the Supreme Court invalidated a significant portion of previously imposed tariffs. The swift response from the White House, restructuring tariffs under a different legal framework, maintained an element of uncertainty but reduced the initial shock to markets.
Futures on the S&P 500, Nasdaq 100, and Dow Jones hovered near prior closing levels, reflecting a temporary balance between the desire to build on the technology rebound and caution ahead of two major catalysts: the presidential address and Nvidia’s earnings. In after hours trading, HP shares came under pressure after issuing a weak 2026 outlook, citing higher component costs and trade related regulatory headwinds. Workday shares also declined after reporting subscription revenue below expectations for the upcoming fiscal year, signaling softer corporate spending on technology solutions.
The upcoming State of the Union address arrives at a sensitive time, as the president faces rising political pressure over economic management, particularly the cost of living. The speech is expected to emphasize economic resilience and attempt to reshape the trade narrative following the court ruling, while markets continue assessing the limits of executive authority in tariff policy.
Attention remains firmly on Nvidia’s results, widely viewed as a direct gauge of artificial intelligence driven spending and demand for advanced chips. Forecasts point to strong year over year growth in both revenue and earnings. However, elevated valuations mean investors will look beyond headline numbers for confirmation that demand momentum can be sustained in coming quarters.
Meanwhile, the U.S. dollar moved higher during the session, supported by economic data that exceeded expectations after facing pressure in the prior session. Even with the rebound, markets remain cautious amid lingering uncertainty tied to the newly structured tariff framework announced following the Supreme Court decision.
The Dollar Index advanced toward the 98 level, backed by stronger than expected private payroll figures from ADP and an improvement in consumer confidence. These readings lifted Treasury yields, particularly at the short end of the curve, and reduced expectations for a near term rate cut, as solid labor data weakens the case for a dovish shift.
Trade policy remains a key source of uncertainty. After the court struck down a large share of previous tariffs, the administration reinstated duties under a revised legal structure, raising the rate to 15% from 10%. This shift unsettled trading partners and raised questions about the durability of existing trade agreements. The European Parliament’s decision to delay a vote on a trade deal with Washington reflects that hesitation.
In Europe, the euro traded in a tight range after European Central Bank President Christine Lagarde stated that current monetary policy is in a good place, while emphasizing that future steps will depend on incoming data. This guidance kept the single currency steady without generating meaningful momentum. Sterling edged slightly higher ahead of testimony from Bank of England policymakers, which could recalibrate expectations for the March meeting.
The Japanese yen faced renewed pressure as expectations for imminent tightening by the Bank of Japan faded. Reports suggesting prior U.S. involvement in currency related actions also weighed on sentiment. In China, the central bank left key lending rates unchanged, signaling a preference for measured support to stabilize growth while containing financial risks.
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