Stock Market Futures Rise Ahead of Key Nvidia Earnings and Inflation Report

U.S. stock index futures climbed on Monday, with investor focus on Nvidia's upcoming earnings and an important inflation report. Jerome Powell's comments on potential rate cuts boosted confidence. Odds for a September rate cut are high, as traders await Friday's inflation data. Nvidia's stock jumped nearly 1% in premarket trading.

U.S. stock index futures edged higher on Monday as investors focused on Nvidia's forthcoming earnings and a crucial inflation report expected later this week. Bolstering market confidence, Federal Reserve Chair Jerome Powell indicated on Friday that the time has come to lower borrowing costs.

The main indexes rallied over 1% in the previous session with the S&P 500 and Dow nearing record highs. Smaller, rate-sensitive companies had their strongest day in six weeks as equities rebounded from the early August market slump.

Traders are now factoring in either a 25- or 50-basis-point rate cut for September. The odds of a 25-bps cut have dropped to 63.5%, while the probability of a 50-bps cut has risen to 36.5%, according to CME Group's Fed Watch tool. Focus is now shifting to Friday's July Personal Consumption Expenditure data, the central bank's preferred inflation gauge.

(With inputs from agencies.)