Investing.com – U.S. stock futures were little changed on Tuesday amid uncertainty over the future direction of interest rates and ahead of earnings from market darling Nvidia.
At 06:45 ET (1045 GMT), the price was up 12 points, or 0.1%, up 3 points, or 0.1%, and down 10 points, or 0.1%.
The tech sector hopes for Nvidia
The major indexes traded mixed on Monday, falling 0.5% but rising 0.1%, while tech indexes rose 0.7% to a new record high.
Tech stocks continued to buy, with Nvidia (NASDAQ:) set to report quarterly earnings after the close on Wednesday.
The company has been at the center of a surge in market valuations over the past year and is considered a leader in the fast-growing artificial intelligence industry. Nvidia’s earnings are likely to set the tone for the entire technology sector.
Nvidia shares rose 2.5% and were close to a record high. Peers Advanced Micro Devices (NASDAQ:) and Intel Corporation (NASDAQ:) rose 1.1% and 0.9%, respectively, while tech heavyweights including Apple (NASDAQ:), Microsoft (NASDAQ:) and Alphabet (NASDAQ:) are growing.
Industry news was less impressive Tuesday, with shares of Palo Alto Networks (NASDAQ:) (NASDAQ:PANW) falling more than 8% in premarket trading after analysts noted that the cybersecurity company’s latest billings forecast disappointed high expectations.
New Fed signals expected amid rate uncertainty
However, outside of the technology sector, markets remained on edge as they awaited more signals from the Fed this week, particularly on its latest policy meeting and speeches from several officials.
While slightly lower consumer inflation readings in April sparked a rally on Wall Street, a number of Fed officials warned that the bank still needs much more confidence that inflation is falling before it can start cutting interest rates.
and are among the Fed officials who will speak later Tuesday. Both officials are members of the Fed’s rate-setting committee.
The central bank could begin cutting rates by September, although this will also largely depend on inflation dynamics.
Lowe’s net sales are up
The retail sector will also be in focus on Tuesday thanks to earnings from Lowe’s (NYSE:) and Macy’s (NYSE:).
Lowe’s shares rose 3% in premarket trading after the home goods retailer reported first-quarter net sales that beat analysts’ estimates, helped by growth in its online offerings and services for professionals.
Oil outpaces US oil inventories
Crude oil prices fell on Tuesday, extending losses recorded in the previous session, amid concerns that high U.S. interest rates will weigh on economic activity in the world’s largest consumer this year.
By 06:45 ET, WTI futures were trading 1.4% lower at $78.20 a barrel, while the contract fell 1.4% to $82.57 a barrel.
Both benchmark indexes fell less than 1% on Monday as U.S. Federal Reserve officials said they were waiting for more signs of slowing inflation before considering cutting interest rates.
Political uncertainty in Iran following the death of Iranian President Ebrahim Raisi, as well as concerns over the health of the Saudi king, also pose risks to crude oil markets.
The latest US estimate will be released later in the session from the American Petroleum Institute.
(Ambar Warrick contributed to this article.)