Market Awaits Nvidia Earnings and Iran Sanctions

PARAGRAPH 1 --- What happened: U.S. stock futures fell Monday, with investors anticipating Nvidia's (NASDAQ:NVDA) Q2 earnings later this week. Geopolitical tensions, particularly U.S. sanctions on Iran, added to market jitters. European and Asian stocks traded directionlessly, awaiting details on Iran sanctions and Nvidia's results.

PARAGRAPH 2 --- Market impact: The AI trade is in focus, driving market sentiment. Nvidia's earnings will provide insights into AI demand, affecting tech stocks like AMD and Intel. Iran sanctions could disrupt oil markets, impacting energy stocks. The technology sector, particularly chipmakers, is vulnerable to geopolitical risks.

PARAGRAPH 3 --- What to watch next: Nvidia's Q2 earnings report on August 16 will offer clarity on AI demand and validate the resurgent AI trade. The U.S. inflation data release on August 10 and Fed Chair Jerome Powell's speech at Jackson Hole on August 25 will provide insights into monetary policy. The details and impact of U.S. sanctions on Iran, expected to be announced soon, will also influence markets.