US stock futures traded subdued as investors avoided major risk-taking ahead of two high-impact market catalysts, Nvidia’s upcoming earnings release and the closely watched US jobs report. Market participants expect significant volatility, given Nvidia’s outsized influence on AI-driven market sentiment and the labour data’s implications for Federal Reserve policy direction. 

Stifel analysts projected a potential 5% decline in the S&P 500, forecasting the index may slide toward the 6,350 level amid uncertain macroeconomic conditions and risk-averse investor positioning. The firm highlighted deteriorating short-term sentiment ahead of critical US earnings releases and employment reports expected later this week. With market participants exhibiting caution around valuation sustainability, analysts believe any negative surprises in inflation or labour-market data could amplify downside pressures.