By Ankika Biswas and Lisa Pauline Mattackal
(Reuters) -U.S. stock index futures edged higher on Monday, with Nvidia (NASDAQ:)’s quarterly results and the Federal Reserve’s policy meeting minutes due this week likely to test Wall Street’s record-breaking run.
The three major indexes marked their fourth straight week of gains on Friday, as upbeat corporate earnings and softer-than-expected inflation data supported hopes for interest rate cuts this year.
The benchmark and the tech-heavy Nasdaq both touched all-time highs last week, with the blue-chip Dow closing above the 40,000 level on Friday.
Deutsche Bank raised its year-end S&P 500 target to 5,500 from 5,100 points earlier, the highest among major brokerages, citing strength in corporate earnings.
Investors are keenly awaiting quarterly results from artificial intelligence (AI) chip leader Nvidia and minutes of the Fed’s latest monetary policy meeting, both scheduled for Wednesday.
Nvidia shares rose 1.3% premarket, with at least three brokerages raising the stock’s price target.
“The minutes will sound more hawkish on the margin than Chair Powell’s press conference, as other members on the committee were more concerned than Powell about whether policy was doing enough,” analysts at Bank of America said in a note.
With few clues so far from Fed officials on the timing for rate cuts, investors will parse remarks from rate-setters including Raphael Bostic, Michael Barr, Christopher Waller and Philip Jefferson during the day.
Traders expect a near 82% chance that the Fed will cut rates by at least 25 basis points in September, according to the CME’s FedWatch Tool.
On the economic data front, weekly initial jobless claims, S&P global flash PMI readings and durable goods data are due through the week.
Global market participants were also closely watching out for developments around the death of Iranian President Ebrahim Raisi in a helicopter crash.
At 7:18 a.m. ET, were up 11 points, or 0.04%, were up 6.50 points, or 0.12%, and were up 36.25 points, or 0.2%.
JPMorgan Chase (NYSE:) gained 1.1% as the company raised its 2024 interest income forecast to $91 billion.
Johnson Controls (NYSE:) International jumped 6% following a report that activist investor Elliott Investment Management had built a position worth over $1 billion in the building solutions provider.
Paramount Global climbed 2% after a report Sony (NYSE:) Pictures Entertainment and Apollo Global Management (NYSE:) have signed non-disclosure agreements that will allow them to look at the U.S. media company’s books ahead of a potential bid for its assets.
