Investing.com - U.S. stock futures remained under pressure on Monday as investors braced for Nvidia’s earnings later this week, while rising oil prices and escalating tensions between the United States and Iran added to market uncertainty.

Investors are also looking ahead to Federal Reserve Chair Kevin Warsh’s speech at Jackson Hole for clues on the outlook for interest rates.

1. Futures slip ahead of Nvidia

U.S. stock futures edged lower in European trade as investors took a cautious stance ahead of Nvidia’s closely watched earnings report on Wednesday.

Nasdaq 100 futures fell 0.6%, while S&P 500 futures slipped 0.2%.

Nvidia’s results will be a major test for the artificial intelligence trade, particularly as investors question whether the rapid growth of AI-related companies can justify increasingly expensive valuations.

The chipmaker’s earnings are also being watched for signs of whether demand from major technology companies remains strong enough to support massive spending on AI infrastructure.

Nvidia matters well beyond the company itself: its results can move the broader technology sector because the company sits at the center of the AI investment boom.

2. Nvidia’s AI servers are getting more expensive - Bloomberg

Adding to concerns around the AI trade, rising memory chip costs are pushing up the price of servers containing Nvidia’s processors, Bloomberg News reported.

Some of Nvidia’s biggest customers could face price increases of more than 15% for systems shipped early next year, including servers using the company’s next-generation Vera Rubin and Grace Blackwell chips.

Server makers supplying major data center operators including Microsoft, Google’s Alphabet and Oracle have reportedly warned customers about the increases.

The higher costs highlight a potential challenge for the AI boom: companies are spending enormous sums to build AI infrastructure, but the cost of that infrastructure is also rising.

The question is whether technology companies can continue spending at today’s pace without those higher costs eventually hurting profit margins.

3. US prepares new Iran sanctions

Markets are also watching Washington’s latest escalation against Iran, with Treasury Secretary Scott Bessent warning that the United States is preparing what he described as its toughest sanctions package against a country.

Bessent is expected to announce the measures at a conference on Monday, saying the United States was entering the "endgame" against Iran and warning countries that continue to support Tehran that they could become "global pariahs."

The announcement comes as Iranian officials have threatened to halt oil exports if the economic pressure continues.

For markets, the biggest concern is energy. Any disruption to Iranian oil exports or shipping through the Strait of Hormuz could push crude prices higher, adding to inflation and potentially making it harder for central banks to keep interest rates steady.

4. Oil slips after two weekly gains

Oil prices fell more than $1 a barrel on Monday as traders took some profits after crude posted its second consecutive weekly gain.

Brent crude futures had fallen 1.5% to $93.16 a barrel, while U.S. West Texas Intermediate crude was down 1.6% at $85.70.

Both benchmarks gained more than 5% last week as U.S.-Iran peace talks stalled and oil shipments through the Strait of Hormuz were restricted.

The waterway is particularly important to global energy markets because roughly a fifth of the world’s oil supply normally passes through it.

Higher oil prices can be a problem because they raise fuel and transportation costs and can feed into broader inflation. That could keep interest rates higher for longer and put pressure on stocks.

5. Warsh’s Jackson Hole speech in focus

Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole economic symposium on Friday will be closely watched for clues about the future path of interest rates.

Markets are not currently expecting major forward guidance, but investors will be listening for any indication of how policymakers view inflation, economic growth and the possibility of future rate cuts.

The speech comes at a particularly important time for markets, with investors already debating whether strong economic growth and persistent inflation could limit the Fed’s ability to ease monetary policy.

For retail investors, the message from the Fed matters because interest rates influence everything from mortgage and borrowing costs to stock valuations. A more hawkish tone could pressure expensive growth and technology stocks, while signs of easier policy could provide another boost to equities.

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