Dow futures are on the rise as we approach a week filled with significant economic data releases, which may play a crucial role in shaping the future path of interest rates in the upcoming months. Meanwhile, artificial intelligence continues to capture the attention of investors, leading to a notable increase in the tech-heavy index, which reached a new record closing high last week. AI-favored Nvidia promises to allocate a portion of its sales in China to the U.S. government, according to media reports, while enterprise AI application software group C3.ai releases a preliminary earnings statement that does not meet analysts’ expectations.

U.S. stock futures experienced an uptick on Monday, as market participants prepared for a week rich in significant economic indicators and evaluated the sustainability of the burgeoning enthusiasm surrounding artificial intelligence. By 03:00 ET (07:00 GMT), the contract experienced an increase of 108 points, representing a 0.2% rise, gained 12 points, also reflecting a 0.2% increase, and advanced by 37 points, again indicating a 0.2% growth. The tech-heavy Nasdaq Composite experienced a notable increase in the previous session, concluding at a new all-time high, with other significant indices also showing upward movement. At the core of the Nasdaq’s recent ascent was a significant rally in Apple, with the iPhone-maker’s stock price experiencing an increase of over 13% last week—marking its largest weekly gain since 2020. This surge can be attributed, in part, to optimism surrounding the company’s commitment to increase investment in the U.S., which may enable it to circumvent many of President Donald Trump’s extensive tariffs. The benchmark’s technology and communication services indices concluded at new peaks.

Meanwhile, the anticipation that recent indicators of a deceleration in the U.S. labor market will prompt the Federal Reserve to reduce interest rates at its forthcoming meeting in September provided additional backing to equities. Nvidia has pledged to allocate a portion of its sales from AI chips in China to the U.S. government, according to reports. Nvidia is said to be preparing to remit 15% of the profits generated from its artificial intelligence sales to China to the U.S. government, as indicated by various media sources. According to sources with knowledge of the situation, reports indicate that Nvidia CEO Jensen Huang had a meeting with President Trump at the White House last week, during which they reached an agreement to allocate a portion of the revenue generated from operations in the substantial and profitable Chinese market to the U.S. government. Peer Advanced Micro Devices has also agreed to the same deal, the reports said. Nvidia was reportedly granted licenses by the Commerce Department to commence sales of its China-specialized H20 AI chip two days following the meeting, despite the White House stating one month prior that it had authorized the company to sell the processors in the country.

Shares of C3.ai experienced a significant decline in after-hours trading following the release of a disappointing preliminary earnings announcement from the enterprise AI application software group. The statement, released after market hours on Friday, indicated that the firm now projects total revenue for its fiscal first quarter to be in the range of $70.2 million to $70.4 million, while its adjusted loss is expected to fall between $57.7 million and $57.9 million. Expectations among analysts were set for quarterly revenue to reach $104 million, alongside an anticipated operating loss of $27.3 million. C3.ai indicated that it is in the process of finalizing a restructuring of its sales and services organization. The firm based in Redwood, California, is set to disclose its comprehensive results for the period on September 3.

On the economic calendar, market participants will be closely monitoring the upcoming release of U.S. consumer price data for July on Tuesday. A distinct measure of producer prices for final demand is scheduled for release on Thursday, while indicators of American retail sales and a survey assessing consumer sentiment are anticipated to be published on Friday. In conjunction with the labor market, inflation constitutes the other essential component of the Federal Reserve’s dual mandate. The recent data released earlier this month has introduced complexities to the outlook for interest rates, revealing weak job growth in July alongside significant downward revisions for June and May. These developments suggest a cooling labor market, potentially strengthening the argument for rate cuts that could stimulate investment and consumer spending. However, inflation continues to persist at levels above the Federal Reserve’s 2% target, raising concerns that any decrease in borrowing costs might ignite inflationary pressures.

In light of current circumstances, the Federal Reserve has predominantly embraced a “wait-and-see” approach regarding interest rate decisions, choosing to await greater clarity on the effects of Trump’s tariffs on the overall economy. However, fissures have begun to emerge among Fed policymakers, with media reports indicating that a significant number of officials are increasingly receptive to the notion of forthcoming cuts. This follows the dissent of two Federal Reserve rate-setters from the majority during the Fed’s July meeting, who advocated for reductions instead. Fed Governor Michelle Bowman, one of the dissenters, reiterated her stance in a speech on Saturday, stating that the July jobs report had highlighted her concerns regarding the condition of the labor market. She contended that the weakness in the employment landscape has overshadowed concerns regarding escalating price increases. The remarks arise amidst Trump’s persistent calls for the Federal Reserve to promptly lower interest rates—a campaign that has notably targeted Fed Chair Jerome Powell, intensifying the president’s criticism and casting uncertainty on the traditional autonomy of the central bank.