US Stock Futures Present Modest Gains Following Tech Sector Weakness

US stock futures inched higher late Monday as investors continued to assess the recent selloff in the technology sector. Despite another challenging week for tech stocks, futures markets indicated a cautious optimism heading into Tuesday’s trading session. This comes after US markets were closed Monday for the Presidents’ Day holiday.

Market Performance Overview

As of late Monday, Dow Jones Industrial Average futures (YM00) were up approximately 100 points, or 0.2%. S&P 500 futures (ES00) also saw a gain of 0.2%, while Nasdaq-100 futures (NQ00) remained relatively flat. The Dow experienced its worst week since November, falling 1.2%, while the S&P 500 slid 1.4% and the Nasdaq COMP slumped 2.1%, marking its longest losing streak since 2002 – five consecutive weeks of decline. Source: Morningstar

Factors Influencing the Market

The ongoing concerns surrounding potential disruptions from artificial intelligence (AI) continue to weigh heavily on tech stocks. However, a recent inflation report offered a glimmer of hope. January’s inflation data revealed that prices rose less than expected, potentially encouraging the Federal Reserve to consider future interest rate cuts. This raised hopes for a “soft landing” – a scenario where inflation is brought under control without triggering a recession. Source: Morningstar

Commodity and Currency Movements

Alongside stock futures, commodity markets also showed movement. Crude oil futures (CL.1) rose by over 1%, driven by investor anxiety regarding potential US military action against Iran. Conversely, gold (GC00) and silver (SI00) futures experienced declines, while Bitcoin remained below the $70,000 level. Source: Morningstar

Upcoming Economic Data

Investors are now looking ahead to key economic releases this week. The Federal Reserve’s minutes from its latest meeting will be published on Wednesday, followed by the core personal-consumption expenditures index on Friday. These data points will provide further insights into the state of the US economy and potential monetary policy decisions. Source: Morningstar

Pre-Market Snapshot

As of the pre-market session, key indexes showed the following movements: Source: CNBC and Source: CNN

• Dow Jones Industrial Average Futures (YM00): Up 0.2%
• S&P 500 Futures (ES00): Up 0.2%
• Nasdaq-100 Futures (NQ00): Flat

Fourth-quarter earnings season is nearing its conclusion, providing a more complete picture of corporate performance.