Nasdaq 100: Tesla Rallies, Nvidia Stumbles; Market Awaits Earnings Results

Nasdaq Futures Climb as Tesla Soars; Earnings Season Looms

Nasdaq-100 futures rose 0.19% Monday, driven by an 8% surge in Tesla shares following reports of potential regulatory relief for self-driving vehicles under the incoming Trump administration. In contrast, Dow Jones Industrial Average futures slipped 59 points (0.14%), while S&P 500 futures traded flat.

Market Overview and Last Week’s Performance

Monday’s mixed futures come on the heels of a challenging week for U.S. markets. The Dow fell 1.2% to close at 43,444.99, pulling back after briefly surpassing the 44,000 mark. The S&P 500 declined 2.1%, and the Nasdaq Composite lost 3.2%, reflecting cautious sentiment amid hawkish signals from Federal Reserve Chair Jerome Powell.

Powell emphasized that the Fed is unlikely to lower rates soon, citing robust economic growth and a strong labor market. According to the CME FedWatch Tool, markets are pricing in a year-end rate range of 4.25%-4.50%. This rate outlook, coupled with lingering recession fears, weighed heavily on last week’s performance.

Earnings and Stock-Specific Drivers

Tesla’s premarket surge highlights optimism over potential regulatory changes, with Bloomberg reporting that Trump’s transition team is targeting a more relaxed approach to autonomous vehicle regulations.

Meanwhile, Nvidia shares fell 2% after reports of overheating issues with its Blackwell AI chips. This week’s earnings report from Nvidia, due Wednesday, will be a focal point, particularly as traders await insights into AI chip demand.

Earnings season continues with major retailers like Walmart, Target, and Ross set to report. Thus far, 93% of S&P 500 companies have delivered results, with 75% exceeding EPS expectations, according to FactSet.

In other corporate news, Wells Fargo upgraded CVS shares, citing an improved regulatory environment under a Republican administration. Conversely, Goldman Sachs downgraded Redfin, projecting a 22% downside due to increasing competition and stagnation in U.S. home sales.

Broader Market Sentiment

Bank of America raised its S&P 500 price target for 2025 to 6,000 but expressed caution about near-term upside. Analyst Savita Subramanian noted the index remains expensive but highlighted potential for a sector rotation into cyclicals and high-dividend stocks.

Market Forecast

Looking ahead, traders will closely monitor Nvidia’s earnings and Fed commentary for clues about future market direction. While the Nasdaq appears poised to outperform in the short term, broader indexes may face headwinds as rate concerns persist. Earnings surprises could provide selective opportunities, particularly in sectors like technology and retail. Expect volatile trading as the market digests these catalysts.