U.S. stocks traded mixed and little changed early Monday as investors balanced enthusiasm ahead of Nvidia’s earnings later this week while digesting a blockbuster utility merger and continued volatility in oil and crypto markets.
The Dow Jones Industrial Average fell 41.75 points, or 0.08%, to 49,484.4, while the S&P 500 slipped 2.91 points, or 0.04%, to 7,405.59. The Nasdaq Composite outperformed, rising 12.56 points, or 0.05%, to 26,237.7 as investors continued rotating toward large-cap technology and artificial intelligence leaders.
Investors appear willing to look past weakness in commodities and cryptocurrencies as attention centered on Nvidia’s earnings report Wednesday after the close, which many on Wall Street increasingly view as a referendum on the durability of the AI-driven market rally.
Wedbush analyst Dan Ives described the coming report as another “get the popcorn out” moment for global markets, arguing Nvidia remains “the foundation for the AI Revolution.” The firm said hyperscaler and enterprise AI spending trends continue to accelerate and predicted Big Tech capital expenditures could exceed $750 billion in 2026.
That bullish AI narrative was reinforced Monday by comments from Apollo Global Management Chief Economist Torsten Slok, who said AI has expanded far beyond equities and now “penetrates every corner of financial markets,” accounting for nearly half of investment-grade debt issuance and 87% of venture capital funding.
The market’s willingness to absorb elevated oil prices while still pushing toward record territory reflects how heavily investor psychology remains anchored to AI spending and mega-cap technology earnings. Crude oil futures fell 1.23% to $99.78 a barrel early Monday, easing after recent war-driven spikes but remaining near psychologically important triple-digit levels that continue to fuel inflation concerns. Gold prices also softened as investors showed a greater willingness to rotate back into risk assets and AI-linked equities ahead of Nvidia’s earnings report later this week. The relatively subdued VIX reading near 18 indicated traders were not yet aggressively hedging downside risk ahead of Nvidia’s results.
Traders were also digesting a major consolidation move in the energy and utility sector after NextEra Energy announced it would acquire Dominion Energy in a $67 billion transaction that would create what the companies called the world’s largest regulated electric utility business. The deal underscored how rapidly electricity demand tied to AI data centers and digital infrastructure is reshaping the energy landscape.
Meanwhile, speculative appetite remained active in pockets of the market after reports intensified around a potential SpaceX IPO, with investor enthusiasm building around Elon Musk’s private aerospace company potentially targeting a valuation approaching $2 trillion.
All eyes now turn to Wednesday evening, when Nvidia’s earnings and guidance could determine whether the AI rally extends deeper into the summer or begins facing tougher scrutiny from investors.