S&P 500 and Nasdaq 100: Tech Stocks Brace for Volatility as Nvidia’s GTC Nears

Nvidia’s GTC Keynote Puts AI Stocks in Focus as Markets Open Lower

U.S. stock futures edged lower Tuesday as traders awaited key developments from Nvidia’s (NVDA) highly anticipated GPU Technology Conference (GTC). The event, which kicks off with CEO Jensen Huang’s keynote, is expected to set the tone for AI-related stocks. Meanwhile, broader markets remain under pressure as investors weigh Federal Reserve policy expectations and corporate earnings.

Tech Stocks Brace for Nvidia’s Announcements

Nasdaq 100 futures slipped 0.5% in pre-market trading, with the S&P 500 down 0.3% and the Dow Jones Industrial Average futures losing 0.2%. Nvidia shares dipped 1.07% ahead of the keynote, despite investor optimism surrounding the unveiling of its latest AI chip, Blackwell Ultra. The company is also expected to provide updates on its Rubin and Vera chip platforms, as well as its strategy for quantum computing and AI-driven robotics.

With AI being a key driver of tech market gains, Nvidia’s announcements could heavily influence sentiment across the sector. Major AI chip users, including Microsoft (MSFT), Alphabet (GOOGL), and Amazon (AMZN), could see price swings based on Huang’s outlook on AI spending trends.

Pre-Market Movers: Tesla, Duolingo, Baidu Among Key Stocks

Tesla (TSLA) fell 3% in early trading after RBC Capital Markets cut its price target, citing growing competition in the EV space. Baidu (BIDU) gained 2% after unveiling two new AI models, positioning itself as a key player in China’s AI race. Language-learning platform Duolingo (DUOL) climbed 1.5% following an upgrade from Citizens JMP Securities, with analysts pointing to strong subscription growth.

Coal producer Peabody Energy (BTU) jumped 4.8% after former President Donald Trump signaled support for coal energy production, while Sarepta Therapeutics (SRPT) plummeted over 25% following a patient fatality linked to its Duchenne muscular dystrophy treatment.

Market Outlook: Fed Meeting and AI Spending Trends in Focus

Beyond Nvidia’s GTC, investors are closely monitoring the Federal Reserve’s two-day policy meeting. Traders widely expect rates to remain unchanged, but Chair Jerome Powell’s comments will be scrutinized for insights into future monetary policy.

With AI spending expectations in flux, Nvidia’s ability to reassure investors on demand for its high-end processors will be critical. A bullish outlook could lift semiconductor stocks, while any signs of slowing demand may trigger further selling in the tech sector. Traders should brace for heightened volatility as Nvidia’s keynote unfolds and macroeconomic data influences broader sentiment.

More Information in our Economic Calendar.