4:15pm: Nasdaq closes higher
Tesla shares resumed a post-election rally, driving a boost in the Nasdaq.
The tech-heavy index rose 0.6% to close at 18,792 points, while the S&P 500 added 0.4% at 5,894. The Dow Jones fell 0.1% to finish at 43,390.
Investors are awaiting Nvidia's earnings to assess the health of the AI sector this week.
"The big retailers will shed light on the health of US consumers, while Nvidia is expected to deliver a strong beat and an upbeat outlook, fueled by ‘insane demand’ for its Blackwell chips," said Ipek Ozkardeskaya, Senior Analyst at Swissquote Bank.
"That said, with such high expectations already baked into its stock, surprising Nvidia investors is becoming increasingly challenging with each passing quarter."
3:10pm: Labor market data, housing indicators in focus
The spotlight could return to the labor market this week, with key data shedding light on employment trends.
UBS analysts note that state employment data, due Tuesday, will offer insights into whether October's slower nonfarm job growth was influenced by weather and strikes.
Initial jobless claims are expected to rise modestly by 3,000 to 220,000 for the week ending November 16, while continuing claims could climb by 27,000 to 1.9 million.
Additional labor market insights will come from the Quarterly Census of Employment and Wages for Q2, providing a detailed view of employment trends during the first half of the year.
The housing sector will also be in focus, with several indicators reflecting the impact of elevated interest rates despite the Federal Reserve’s 75 basis points of cuts this year. UBS points out that higher rates continue to restrain housing activity.
Economic growth estimates for Q3 could also see adjustments with the release of the advance quarterly services survey, alongside manufacturing and services surveys for November offering further clues about the economy's momentum.
1:50pm: Nvidia shares under pressure
NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) shares came under pressure on Monday morning after reports emerged of overheating issues with the company’s new Blackwell artificial intelligence chips.
Shares fell 2.9% to $137.83 in early trading, following a report in the Information that the graphics processing units ran into issues when placed together in server racks.
Units overheated when connected in racks built to house up to 72 chips, Information-cited sources said, prompting concern over delays among data center customers.
The company's results are among the most hotly anticipated events this week. Per Nvidia’s own guidance, the artificial intelligence microchip titan is expected to deliver quarterly revenues of $32.5 billion, which is in the ballpark of an 80% year-on-year increase.
12:55pm: Tech comeback
US stocks were in the green on Monday, with Tesla Inc (NASDAQ:TSLA) shares driving gains amid renewed interest in tech.
The S&P 500 climbed 0.4%, and the Nasdaq Composite added 0.5%, while the Dow hovered near flat.
The tech-heavy Nasdaq was boosted by Tesla surged up to 8% following reports that the incoming Trump administration may ease self-driving vehicle regulations.
Investors also turned their focus to Nvidia's upcoming earnings, seen as a key indicator for the AI sector.
11:35am: A bit of a breather
Investors will get a breather this week from the rapid-fire pace over the past few weeks.
Housing market data may reflect October's hurricane impacts in Florida, Deutsche Bank analysts noted.
Expect limited Federal Reserve appearances following Chair Powell's recent comments that reiterated a cautious approach to rate cuts, emphasizing the importance of upcoming employment and inflation data ahead of the December 18 FOMC meeting.
Key releases like initial jobless claims, the Philadelphia Fed index, and University of Michigan consumer sentiment will provide additional economic insights.
Deutsche Bank anticipates solid job growth and potential factory sector improvement.
9.47am: Nvidia drags US markets
US markets got off to a mixed start this week.
The Nasdaq 100 opened 0.25% higher while the Dow Jones Industrial Average and the broader S&P 500 index both opened.
NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) is causing a drag on the market. The chipmaking titan dipped more than 3% at open following news that its new flagship Blackwell artificial intelligence processor is encountering overheating issues.
Other large-cap chip stocks, including Arm Holdings PLC (NASDAQ:ARM) and ON Semiconductor, are also in the red.
Top morning risers include Palantir Technologies Inc (NYSE:PLTR), which is in the process of shifting its listing to the Nasdaq, and Walt Disney Company, which is revelling in bumper full-year financial results.
7.32am: Dow Jones to drag
The tech-focused Nasdaq 100 index is expected to surge up to 90 points, or around half a percentage point, when US markets open on Monday.
On the flip side, the Dow Jones Industrial Average, which is in the midst of welcoming chipmaking giant NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) to its ranks, is expected to fall more than 100 points, or a quarter of a percentage point.
The broader S&P 500 is also tipped to open a quarter percentage point lower.
US stock indexes swept to record highs across the board earlier this month following Donald Trump's presidential election victory over Kamala Harris.
They have since seen a sharp correction, although Nvidia’s star power could encourage markets higher if it managed to deliver another resounding revenue beat in Wednesday’s third-quarter earning.