On Monday, S&P futures displayed a varied performance following a turbulent week marked by valuation concerns, a shift in market dynamics, and a reevaluation of Federal Reserve rate cut expectations that impacted the artificial intelligence sector. Futures for the S&P 500 saw an increase of 0.1%, whereas those for the Nasdaq-100 experienced a rise of 0.3%. The futures for the Dow Jones Industrial Average saw a decrease, dropping by 22 points, which is equivalent to 0.1%. In the premarket, Alphabet saw a rise of more than 4% after the announcement that Warren Buffett’s Berkshire Hathaway had purchased a stake in the parent company of Google and YouTube.

The Nasdaq Composite wrapped up the prior week with a decline of 0.5%, largely influenced by downturns in Alphabet, Amazon, Broadcom, and Meta Platforms. Last week, the Dow Jones Industrial Average and S&P 500 saw modest increases, even though they faced notable downturns on Thursday. “We had anticipated the initial weeks of November to exhibit volatility, and it indeed appears that we are currently experiencing such fluctuations,” stated Tom Lee, highlighting the expected market dynamics.

“While certain aspects of the wall of worries, including the government shutdown and the New York City mayoral race, have been addressed, other elements continue to persist,” he stated. “Nevertheless, we foresee that the current fluctuations will ultimately give way to a rally, adding around 200 points to push the S&P 500 past 7,000.”

This week, investors are poised to gain deeper insights into the state of the AI sector, as Nvidia is scheduled to report its earnings on Wednesday. Market is set to evaluate the condition of consumer health, particularly as retail powerhouses Walmart and Home Depot gear up to unveil their quarterly results.