Investing.com – U.S. stock index futures were muted in after-hours trading on Monday after heavy selling of technology stocks, especially Nvidia and its peers, led to a mixed session on Wall Street.
Attention remains focused on this week’s upcoming inflation figures, which are likely to influence expectations for interest rate cuts this year.
remained unchanged at 5,517.25 but rose slightly to 19,763.75 by 19:08 ET (2308 GMT). were slightly higher – 38,868.0 points.
Wall Street bounces back from Nvidia and chip manufacturing losses
Wall Street indexes were reeling from sharp losses by NVIDIA Corporation (NASDAQ:) and other major chip companies as investors profited from the sector’s stellar rally over the past few months.
Nvidia bore the brunt of the selling, with shares falling 6.7% and falling for a third straight session after briefly becoming the most valuable stock on Wall Street last week. Shares lost another 1.1% in the aftermarket.
Still, Nvidia shares are up about 138% this year, with analysts maintaining a positive outlook on the stock amid a massive boom in demand driven by artificial intelligence.
Shares of other chipmakers such as Broadcom Inc (NASDAQ:), US shares Taiwan Semiconductor Manufacturing (NYSE:) and Qualcomm Incorporated (NASDAQ:) stabilized in the secondary market after falling on Monday.
Shares of memory chip maker Micron Technology Inc (NASDAQ:) were down slightly ahead of its quarterly earnings report due Wednesday.
Losses in chipmaker stocks prompted a mixed close on Wall Street. The index fell 0.3% to 5,447.87 points and the index was down 1.1% to 17,500.60 points. However, indices outperformed sectors other than technology, rising 0.7% to a one-month high of 39,411.21.
Investors were seen shifting from technology sectors to more economically sensitive sectors ahead of key inflation data later this week, which is expected to provide more signals on interest rates.
PCE inflation expected
This week the focus was solely on the data, which is the Federal Reserve’s preferred measure of inflation.
The data will be released on Friday and is expected to show a slight decline in inflation. But the PCE data is expected to remain well above the Fed’s annual target range of 2%.
Tough inflation is expected to delay any potential Fed plans to cut interest rates, a scenario that does not bode well for stock markets. But expectations of a possible rate cut have led to a major collapse on Wall Street over the past few months.
Birkenstock and SolarEdge cut aftermarket sales
Among the largest players in the secondary market is a shoe manufacturer Birkenstock Holding, LLC NYSE shares fell 5% after the company said its top shareholder plans to sell 14 million shares in a public offering.
SolarEdge Technologies Inc. NASDAQ shares fell 13.4% after the company announced plans to offer $300 million in new debt.