U.S. stock futures edged higher on Monday ahead of a packed week of crucial economic reports that may influence the direction of interest rates in the near future. Meanwhile, artificial intelligence continues to capture investor attention, driving the tech-heavy Nasdaq Composite to a record closing high last week.

According to media sources, Nvidia (NASDAQ:NVDA), a leader in AI technology, is set to share a portion of its China sales revenue with the U.S. government. At the same time, C3.ai released a preliminary earnings report that fell short of analyst expectations, adding some caution to the AI sector’s recent surge.

Futures Climb

Ahead of this data-heavy week, futures on major U.S. indexes moved upward. By 03:00 ET, Dow futures were up 108 points (0.2%), S&P 500 futures increased by 12 points (0.2%), and Nasdaq 100 futures gained 37 points (0.2%).

The Nasdaq Composite hit an all-time high in the previous session, with strong gains across other benchmarks as well. Apple (NASDAQ:AAPL) led the charge with its stock soaring over 13% last week—the largest weekly jump since 2020—fuelled partly by optimism that the company’s commitment to increased U.S. investment could help it sidestep many of President Donald Trump’s tariffs. Both the S&P 500’s technology and communication services sectors closed at record levels.

Investor hopes that a recent slowdown in U.S. job growth will prompt the Federal Reserve to cut interest rates at its September meeting also lent support to equity markets (details below).

Nvidia to Share China AI Chip Revenues with U.S. Government – Report

The New York Times reported that Nvidia plans to give the U.S. government 15% of the revenue it earns from selling AI technology in China.

The report, citing sources close to the matter, said Nvidia CEO Jensen Huang met with President Trump at the White House last week and agreed to “grant Washington a cut of the money it rakes from its business in the large — and lucrative — Chinese market.” Advanced Micro Devices (NASDAQ:AMD) has reportedly agreed to a similar arrangement.

Following this meeting, the U.S. Commerce Department issued licenses allowing Nvidia to begin sales of its China-specific H20 AI chip, despite the White House’s earlier announcement last month that sales were authorized.

C3.ai Shares Tumble

Shares of C3.ai (NYSE:AI) fell sharply in after-hours trading after the company issued a preliminary earnings update that disappointed investors.

Released after Friday’s market close, the company projected Q1 revenue between $70.2 million and $70.4 million, with an adjusted loss ranging from $57.7 million to $57.9 million.

Analysts had expected revenue of $104 million and an operating loss of $27.3 million. C3.ai also noted it is restructuring its sales and services division.

The Redwood City, California-based firm plans to release its full quarterly results on September 3.

Upcoming Economic Data

Investors will closely watch Tuesday’s release of July’s U.S. consumer price index data.

Additional reports on producer prices for final demand will follow Thursday, with retail sales figures and consumer sentiment surveys scheduled for Friday.

Inflation and labor market conditions remain the Federal Reserve’s twin focus points. Recent weak job growth and downward revisions for May and June suggest a cooling labor market, which could support arguments for rate cuts to boost spending and investment.

However, inflation continues to stay above the Fed’s 2% target, stoking concerns that lowering borrowing costs too soon could reignite price pressures.

Fed’s Bowman Supports Rate Cuts

In this uncertain environment, the Federal Reserve has mostly taken a “wait-and-see” approach on rates, awaiting more clarity on how tariffs affect the economy.

Still, some Fed officials are signaling a growing openness to rate reductions. Two policymakers dissented from the majority at the July meeting, advocating for cuts instead.

Fed Governor Michelle Bowman reaffirmed her position in a Saturday speech, stating that the July jobs report “had underscored her worries around the state of the labor market.” She added, “In effect, she argued, the softness in the jobs picture has outweighed any fears around spiking price gains.”

These remarks align with President Trump’s ongoing calls for swift Fed rate cuts—a stance that has made Fed Chair Jerome Powell a frequent target of the president’s criticism and raised questions about the central bank’s independence.

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This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
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