US stock futures steady after Nvidia rally; Fed cues in focus By Investing.com

Investing.com– U.S. stock index futures steadied in evening deals on Tuesday after a rally in market darling Nvidia drove the Nasdaq to new highs, with focus remaining on upcoming inflation data and more cues on interest rates. 

NVIDIA Corporation (NASDAQ:) extended some gains into aftermarket trade after surging some 7% during the session on hype over artificial intelligence. The stock was now nearing Apple Inc (NASDAQ:) as the second-largest listed firm on Wall Street.

But this did not translate into strength in Wall Street futures, as broader stocks remained subdued on growing caution over U.S. interest rate cuts.

fell 0.1% to 5,321.50 points, while steadied at 18,939.75 points by 19:13 ET (23:13 GMT). fell 0.1% to 39,898.0 points. 

Nvidia drives Nasdaq to record highs, but broader sentiment subdued 

Gains in Nvidia saw the rise 0.6% to a record high of 17,019.88 points on Tuesday. The stock was boosted chiefly by hype over AI, especially after Tesla Inc (NASDAQ:) CEO Elon Musk raised $6 billion for his AI venture. 

Nvidia is the third-largest stock on Wall Street, and also helped the close marginally higher, although the index remained well below recent peaks.

The – which is more economically sensitive than its peers, fell 0.6% to 38,852.86 points. 

Rate jitters mount amid hawkish Fedspeak, PCE watch 

Broader U.S. stocks were largely subdued in anticipation of key inflation data this week. data, which is the Federal Reserve’s preferred inflation gauge, is due this Friday, and is likely to factor into the central bank’s outlook on interest rates. 

Before that, hawkish warnings from Fed officials continued to pour in. Minneapolis Fed President Neel Kashkari warned on Tuesday that the Fed had still not ruled out rate hikes, especially in the face of sticky inflation. 

More Fed officials, including and are set to speak before Friday’s PCE reading.

The Fed’s report is due on Wednesday, while a revised reading on is also due on Thursday. 

Afterhours movers: American Airlines dips, Robinhood jumps 

Among major aftermarket movers, American Airlines Group (NASDAQ:) sank over 6% after it cut its second-quarter earnings forecast on a more subdued outlook on travel demand. 

This pulled down broader airline stocks, with Delta Air Lines Inc (NYSE:), United Airlines Holdings Inc (NASDAQ:) and Spirit Airlines Inc (NYSE:) down between 0.8% to 2.5%.

On the other hand, trading platform Robinhood Markets Inc (NASDAQ:) rose 4.3% after it unveiled a stock buyback of $1 billion. 

Meme stock GameStop Corp (NYSE:) fell 1.7% after surging 25% during the session on raising $933 million in share sales.