Dow Jones and S&P 500: Will Earnings From Home Depot and Nvidia Shift Sentiment?

S&P 500 Turns Lower as Comeback Attempt from Friday’s Sell-Off Stalls

The S&P 500 is trading down 0.26% on Monday afternoon, struggling to rebound from last week’s steep declines as traders weigh economic concerns and upcoming earnings reports. The Dow Jones Industrial Average is up just 22 points, or less than 0.07%, while the Nasdaq Composite is underperforming with a 0.83% drop, pressured by weakness in tech stocks.

Friday’s session saw the Dow tumble over 700 points, with the S&P 500 and Nasdaq shedding 1.7% and 2.2%, respectively. For the week, the Dow posted a 2.51% loss—its worst since October—while the S&P 500 and Nasdaq slid 1.66% and 2.51%. The declines followed disappointing economic data, including a contraction in the U.S. services sector and a weaker-than-expected University of Michigan consumer sentiment index.

Which Sectors Are Moving the Market?

Consumer discretionary and technology sectors are leading declines today. The S&P Consumer Discretionary sector is down 1.15%, while Technology is lower by 1.23%. Notable laggards include Palantir Technologies, sliding 10.97%, Super Micro Computer, down 8.70%, and Domino’s Pizza, off 6.36%.

On the upside, defensive sectors are showing strength. The Healthcare sector is gaining 0.76%, with Amgen up 3.09%, Regeneron Pharmaceuticals advancing 2.94%, and Bristol-Myers Squibb adding 2.49%. The Consumer Staples sector is also in positive territory, up 0.35%, supported by Campbell’s (+2.72%) and Colgate-Palmolive (+2.37%).

What Earnings Should Traders Watch?

Investors are closely watching this week’s earnings slate, which could set the tone for market sentiment. Home Depot and Lowe’s are set to report on Tuesday and Wednesday, offering a read on consumer spending and the health of the retail sector.

Nvidia’s earnings on Wednesday evening are highly anticipated, particularly after China’s release of the DeepSeek large language model, which has raised questions about the sustainability of the AI trade. Market participants will focus on whether this development could pressure Nvidia’s margins and disrupt its dominance in the AI-driven chip market.

“It’s definitely one of the top things that markets are looking at this week,” said Lale Akoner, global market analyst at eToro.

How Are Macroeconomic Concerns Impacting Sentiment?

Broader economic concerns continue to weigh on the market. The January personal consumption expenditures (PCE) index, the Federal Reserve’s preferred inflation gauge, is due Friday. This report could heavily influence Fed policy expectations and market moves.

Additionally, UBS Global Wealth Management has warned of rising odds of a policy misstep under a potential Trump 2.0 administration. The firm noted, “The markets pricing in a high probability of a policy error may be a necessary precursor for the policy put to be exercised.”

What Should Traders Expect Next?

With the market still open and volatility persisting, traders are closely monitoring earnings results and economic data. Nvidia’s report and the PCE index could be pivotal for market direction. While defensive plays like healthcare and consumer staples are providing some stability, broader sentiment remains tied to inflation trends and corporate outlooks. Caution remains warranted as the trading day progresses.

More Information in our Economic Calendar.