Traders work on the floor of the New York Stock Exchange on July 23, 2025.
NYSE
U.S. stock futures inched higher early Monday, with the market once again on the cusp of all-time highs ahead of a week of key inflation reports.
Dow Jones Industrial Average futures rose by 100 points, or 0.2%. S&P 500 futures advanced 0.1%, and Nasdaq-100 futures traded just above the flatline.
Gains were kept in check after a Financial Times report said Nvidia and AMD agreed to give part of their revenue from certain chips sold in China — in exchange for export licenses to that country. Nvidia shares dipped around 1% in the premarket, while AMD lost 2%.
Those moves come after the Nasdaq Composite ended last week at fresh closing highs, and the S&P 500 closed on the threshold of another milestone. The Dow also finished the week on a high note. A rally in Apple — which has been a significant laggard this year — helped bolster the market.
The latest advance has some investors wondering how much longer the stock market can skirt pitfalls, given sky-high valuations, a dimming macroeconomic outlook, and tariff fallout all during a period of seasonal weakness.
“We are probably going to be more in a digestion phase than anything else,” said Jay Woods, chief global strategist at Freedom Capital Markets. He added, “We may get a little bit of sideways action in this market, which is not a bad thing.”
Inflation readings this week will prove a key hurdle for a broad market index near record highs. The consumer price index, which is set to be released Tuesday, and the producer price index, due out Thursday, will be critical in shaping the outlook for the direction of interest rates, especially for the Federal Reserve’s September meeting. Hotter inflation prints could hinder the market’s advance.
“The most important thing is the CPI data,” Woods said. “That will definitely dictate monetary policy.”
The inflation data comes ahead of the Fed’s Jackson Hole meeting in Wyoming on Aug. 21-23, which will likely set the tone for the September meeting.
Melius Research says sell Adobe
Melius Research downgraded Adobe to sell from hold, citing the proliferation of artificial intelligence.
“The world is coming around to the reality that ‘AI is eating software.’ This thesis postulates that the once easy living of ‘Software Eating the World’ is completely unwinding for leading SaaS companies. Former darlings like Adobe, Atlassian and Salesforce are all down more than 20% YTD and still going. We’ve highlighted this theme for some time … but it is still worth highlighting since it could actually get worse – and we’ve even seen this before,” analyst Ben Reitzes wrote.
His $310 price target implies 9.1% downside. Shares fell more than 1% following the downgrade.
ADBE 5-day charts
— Fred Imbert
Nvidia, AMD to pay 15% of China chip sales revenues to U.S., FT reports
Nvidia and Advanced Micro Devices have agreed to give the U.S. government a share of revenues from certain chips sold in China, the Financial Times reported, in an unprecedented arrangement with the White House.
In exchange for 15% of revenues from the chips, the two chipmakers will receive export licenses to sell Nvidia’s H20 and AMD’s MI308 chips in China, according to the FT.
The arrangement comes after Nvidia CEO Jensen Huang met with Trump last week, according to the Financial Times.
Read the complete Financial Times report here.
— Erin Doherty
Nvidia claps back against Chinese accusations its H20 chips pose a security risk
Visitors visit the NVIDIA booth at the 3rd China International Supply Chain Expo in Beijing, China, on July 20, 2025.
Nurphoto | Nurphoto | Getty Images
Chip giant Nvidia pushed back Sunday in response to allegations from Chinese state media that its H20 artificial intelligence chips are a national security risk for China.
Earlier in the day, Reuters reported Yuyuan Tantian, an account affiliated with Chinese state broadcaster CCTV, said in an article published on WeChat that the Nvidia H20 chips are not technologically advanced or environmentally friendly.
“When a type of chip is neither environmentally friendly, nor advanced, nor safe, as consumers, we certainly have the option not to buy it,” the Yuyuan Tantian article reportedly said, adding that the article said chips could achieve functions including “remote shutdown” through a hardware “backdoor.”
In response, a Nvidia spokesperson told CNBC that “cybersecurity is critically important to us. NVIDIA does not have ‘backdoors’ in our chips that would give anyone a remote way to access or control them.”
Nvidia on Tuesday rejected similar accusations.
For more, read here.
— Pia Singh
Stock futures open slightly higher
U.S. stock futures opened slightly higher Sunday night.
Dow Jones Industrial Average futures rose by 56 points, or 0.09%. S&P 500 futures and Nasdaq 100 futures climbed 0.1% and 0.1%, respectively.
— Sarah Min