On Monday, stock futures indicated a lower start for the market as investors awaited key decisions and data releases later in the week. Among the factors driving market sentiment were the Federal Reserve’s upcoming decision on interest rates and the anticipated release of U.S. inflation data.
One significant stock expected to draw attention was Nvidia, a leading provider of artificial-intelligence chips. The company’s stock underwent a 10-for-1 split, with trading on a split-adjusted basis set to begin on Monday. Despite a strong performance throughout 2024, Nvidia’s shares experienced a slight dip in premarket trading, reflecting broader market uncertainties.
Another notable stock was Southwest Airlines, which saw its shares surge after reports emerged that activist investor Elliott Investment Management had acquired a substantial stake in the company. Elliott’s involvement raised expectations of potential strategic changes aimed at improving the airline’s performance.
GameStop, the video game retailer, was also in focus after experiencing significant volatility in its stock price. Despite a sharp decline on Friday, the company’s shares rebounded in premarket trading following supportive comments from influential investor Keith Gill, known as Roaring Kitty.
Tech giant Apple was set to kick off its Worldwide Developers Conference, where CEO Tim Cook was expected to outline the company’s strategy regarding artificial-intelligence software. The event was closely watched by investors for insights into Apple’s future direction and product innovations.
Meanwhile, Tesla CEO Elon Musk disclosed that a large majority of retail shareholders had voted in favor of his controversial $56 billion compensation package. The package, initially approved in 2018 but subsequently challenged in court, faced renewed scrutiny as shareholders prepared to vote on it again.
In the energy sector, Diamond Offshore Drilling attracted attention after announcing a $1.6 billion acquisition deal with Noble Corp. The agreement marked a significant development in the offshore drilling industry and reflected ongoing consolidation efforts in the sector.
Other stocks expected to make moves included KKR, CrowdStrike, and GoDaddy, which were set to join the S&P 500 index later in the month. Additionally, several companies were scheduled to report earnings throughout the week, including FuelCell Energy, Yext, Oracle, Broadcom, Adobe, Rubrik, Casey’s General Stores, Academy Sports & Outdoors, Dave & Buster’s Entertainment, RH, and Signet Jewelers. These earnings reports were anticipated to provide insights into the financial performance and outlook of these companies, influencing market sentiment and investor decisions.