U.S. stocks are set to open sharply lower Monday as Wall Street braces for a high-stakes week of earnings and mounting geopolitical uncertainty. The S&P 500 was down 1.3%, the Nasdaq fell 1.5%, and the Dow was off more than 400 points.
The VIX surged nearly 10%, while gold spiked 2.65% to $3,416.70 — its highest level ever.
Nvidia (NVDA) shares were down about 4% premarket following reports that Huawei plans to begin mass shipments of a new AI chip to Chinese customers as early as next month. The move signals China’s accelerating push to replace U.S. technology in sensitive sectors and adds pressure on Nvidia, already under fire from new White House restrictions on chip sales.
Analysts warn that Nvidia’s role as a strategic asset in the U.S.-China trade standoff could make it especially vulnerable — with powerful knock-on effects for overall U.S. markets, given Nvidia’s position as one of the largest American companies by market cap.
Netflix (NFLX) is one of the rare bright spots in early trading, rising roughly 2% after delivering a blockbuster Q1. The company posted nearly $3 billion in profit and a 31.7% operating margin on $10.54 billion in revenue. Its $7.99 ad-supported tier is seen as more resilient in a tightening economy.
UnitedHealth Group (UNH) remains in focus after last week’s rout, when the stock lost more than 20% on a forecast cut and earnings miss. Shares were slightly lower again Monday morning.
This week also brings earnings from Tesla (TSLA), Alphabet (GOOGL), IBM (IBM), Boeing (BA), and Procter & Gamble (PG), setting the tone for Q2 amid rising fears of a “self-inflicted” recession.
In a Sunday memo, analysts at Wedbush said: “The markets and tech world needs to find a path forward quickly and know what the rules of the game are looking ahead. The White House needs trade deals done quick with a negotiation path established with China.”
The alternative was grim: “Otherwise the markets, 10-year yield, USD, gold, and the economy will head down their own divergent paths over the coming weeks and months ahead. We view this as a key week ahead to get some trade deals on the board as the Street does not care anymore about words and ‘deal progress’ comments.”
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