US equity futures edged lower early Monday as investors prepared for a week dominated by economic data, Federal Reserve commentary, and fresh corporate earnings.
The cautious tone followed a volatile period in which markets rebounded sharply at the end of last week, led by a surge in the Dow Jones Industrial Average.
S&P 500 futures fell 0.22%, while Nasdaq 100 futures dropped 0.44%.
Futures linked to the Dow Jones Industrial Average slipped 42 points, or 0.08%, after the blue-chip index achieved a major milestone during Friday’s session.
Futures soften after Dow milestone
Friday’s rebound helped restore confidence after a tech-led selloff earlier in the week.
The Dow Jones Industrial Average rallied 1,206 points, or about 2.47%, closing above 50,000 for the first time.
The S&P 500 rose about 2%, and the Nasdaq Composite gained more than 2%.
The earlier downturn had been driven by weakness in software stocks and broader concerns surrounding the technology sector.
Bitcoin also tumbled during the risk-off move before recovering, climbing back above $70,000 after briefly falling below $61,000 late Thursday.
At the time of writing, Bitcoin was trading around $69,000, down 2.33% in the last 24 hours.
Technology shares showed signs of stabilization.
The iShares Expanded Tech-Software Sector ETF jumped 3.5% Friday, its first positive session since entering bear-market territory late last month.
Premarket trading also indicated modest gains in software companies, including Datadog, CrowdStrike, and ServiceNow.
Economic data and Fed outlook in focus
Investors now turn their attention to macroeconomic releases and central-bank signals.
Several Federal Reserve officials, including Governors Christopher Waller and Stephen Miran, are scheduled to speak on Monday, with Atlanta Fed President Raphael Bostic also expected to deliver remarks.
The key focus arrives midweek with the delayed January jobs report from the Bureau of Labor Statistics.
The release was postponed by the partial government shutdown.
Economists surveyed by Dow Jones expect payrolls to rise by 55,000 after ADP data showed private payroll growth of only 22,000.
Inflation data follows on Friday, with the January consumer price index expected to show a 2.5% annual rate.
Both reports are seen as critical for shaping expectations around interest-rate cuts, with markets currently pricing a potential reduction around June.
Earnings and sector rotation ahead
Corporate earnings will also help determine market direction.
Coca-Cola and Ford Motor are scheduled to report on Tuesday, while companies including Kyndryl, Becton Dickinson, Apollo Global Management, and Loews are due before the bell on Monday.
Software firms AppLovin and Datadog will report later in the week.
The rotation away from technology shares may continue depending on results and guidance, especially as investors assess heavy artificial-intelligence capital expenditure plans by large technology companies.
Nvidia’s upcoming earnings later this month are expected to serve as another major test for AI-related valuations.
Meanwhile, broader market breadth has improved. Small-cap stocks, represented by the Russell 2000, also benefited from the recent rotation into other sectors.
For now, the market remains in a wait-and-see mode.
Strong earnings, encouraging economic data, and clearer signals from the Federal Reserve could support further gains — but without renewed leadership from technology stocks, investors remain cautious about the durability of the rally.
The post S&P 500, Dow Jones futures tick lower ahead of key US data week appeared first on Invezz