NEW YORK — U.S. stock futures edged lower Monday as investors prepared for a busy week of corporate earnings, economic reports, and potential tariff announcements. Tech heavyweights Nvidia and Intel are set to report quarterly results, while Keurig Dr Pepper announced an $18.4 billion acquisition of coffee giant JDE Peet’s, reshaping the consumer goods sector.
Market Snapshot
At the opening bell, futures tied to the Dow Jones Industrial Average slipped 0.2%, while S&P 500 futures fell 0.3% and Nasdaq futures dipped 0.4%. Analysts said the declines reflected caution ahead of both corporate earnings and new data on inflation and consumer confidence.
“Markets are in a holding pattern,” said Quincy Krosby, chief global strategist at LPL Financial. “Investors want clarity on whether earnings growth will hold up against slowing consumer demand and potential trade headwinds.”
Tech Earnings in Focus
Nvidia and Intel are at the center of attention this week, as both companies are expected to release earnings reports that could provide insight into the health of the semiconductor industry. Demand for artificial intelligence (AI) chips has surged in recent quarters, boosting Nvidia to record highs, while Intel faces pressure to regain market share.
Analysts say a strong performance from Nvidia could lift tech stocks broadly, while weak results from Intel might highlight vulnerabilities in consumer electronics and PC demand.
Keurig Dr Pepper’s $18.4 Billion Acquisition
In corporate news, Keurig Dr Pepper announced a sweeping $18.4 billion acquisition of Netherlands-based JDE Peet’s, one of the world’s largest coffee and tea companies. The deal includes a plan to split JDE’s assets, with parts being sold to rival Nestlé.
The move represents one of the largest consumer goods acquisitions in recent years and signals heightened consolidation in the global beverage industry. Shares of Keurig Dr Pepper rose slightly in premarket trading before settling lower.
Tariff Concerns Hit Furniture Stocks
Furniture retailers were among the hardest hit on Monday after Trump suggested he might impose tariffs on imported furniture, citing a need to “protect American manufacturers.” Shares of companies including Wayfair and RH fell sharply on the news.
Trade policy uncertainty has been a recurring theme for markets, particularly in industries heavily reliant on imports. According to the Office of the U.S. Trade Representative, furniture imports from China and Vietnam accounted for more than $30 billion in 2024.
Investors Await Economic Data
Beyond earnings and trade headlines, investors are awaiting key economic reports this week, including consumer confidence data from the Conference Board and inflation readings from the Bureau of Labor Statistics (BLS). Both will offer clues about the Federal Reserve’s next steps on interest rates.
Markets are currently pricing in a 75% chance of a quarter-point rate cut at the Fed’s September meeting, according to the CME FedWatch Tool.
Outlook
Despite Monday’s cautious tone, analysts said the overall outlook for U.S. equities remains resilient, buoyed by expectations of eventual rate cuts and strong demand in certain sectors like AI. Still, trade tensions and uneven corporate results could test investor optimism in the weeks ahead.