Stock futures edged up on Sunday evening as Wall Street looks ahead to another big week that will feature earnings from AI chip leader Nvidia and another inflation update.<\/p>\n
Markets are coming off a monster rally on Friday<\/a>, when Federal Reserve Chairman Jerome Powell\u00a0opened the door to a rate cut<\/a> next month. <\/p>\n Futures tied to the\u00a0Dow\u00a0Jones Industrial Average rose 24 points, or 0.05%. S&P 500 futures were up 0.05%, and\u00a0Nasdaq\u00a0futures added 0.06%. On Friday, the Dow<\/a> hit a new all-time high, while the S&P 500 and Nasdaq<\/a> closed in on their records.<\/p>\n The yield on the 10-year Treasury was flat at 4.256% after diving Friday on rate-cut expectations. The U.S. dollar was down 0.02% against the euro and flat against the yen.<\/p>\n Gold fell 0.13% to $3,413.80 per ounce. U.S. oil prices rose 0.2% to $63.79 per barrel, and Brent crude added 0.15% to $67.83.<\/p>\n Friday\u2019s stock surge came after a big selloff that was led by tech giants, as doubts have grown about the AI boom and how much it will actually help companies.<\/p>\n That\u2019s after a recent report from MIT<\/a> found that 95% of AI pilot programs at businesses are failing to produce much of a return. <\/p>\n Adding to those concerns were remarks from OpenAI CEO Sam Altman, who drew a parallel between today\u2019s AI frenzy and the 1990s dot-com bubble<\/a>.<\/p>\n Wall Street\u2019s faith in the staying power of AI as an investment thesis will be put to the test when Nvidia reports quarterly earnings after the close on Wednesday.<\/p>\n The report also comes after Nvidia and AMD agreed to an unprecedented deal where they give the federal government a 15% cut of their chip sales to China<\/a>.<\/p>\n For now, demand from U.S. companies remains high as so-called hyperscaler tech giants Alphabet<\/a>, Microsoft<\/a>,\u00a0Amazon<\/a>, and\u00a0Meta Platforms<\/a>\u00a0alone are expected to deploy $400 billion in capital expenditures this year, and most of that is going to AI.<\/p>\n On Friday, the Fed\u2019s preferred inflation gauge is due as policymakers wait and see how much of an effect on inflation President Donald Trump\u2019s tariffs are having.<\/p>\n Earlier updates on the consumer price index and the producer price index were mixed, and analysts expect the personal consumption expenditures index for July to rise 0.2% on a monthly basis and 2.6% on a yearly basis, the same annual rate as June.<\/p>\n But the core PCE is seen climbing 0.3% on a monthly basis and 2.9% on a yearly basis, accelerating from June\u2019s 2.8% annual rate.<\/p>\n Still, some Fed officials, including Powell, have indicated that tariff-related impacts on inflation may be short term and that more attention should go to the labor market, which has shown signs of weakening.<\/p>\n