Stock futures rose on Monday as investors looked forward to a week filled with crucial earnings reports from major tech companies, including Microsoft, Alphabet, Meta, and Tesla. The S&P 500 and Nasdaq Composite both experienced significant losses last week, with the Nasdaq falling by over 5%. However, the Dow Jones Industrial Average managed to eke out a small gain.
The tech-heavy selloff came as investors grew increasingly concerned about inflation and rising interest rates. The Federal Reserve's preferred measure of inflation is set to be released on Friday, along with US first-quarter GDP data. These reports will offer valuable insight into the state of the economy and the impact of aggressive Fed interest-rate hikes.
Four of the so-called 'Magnificent Seven' tech giants are scheduled to report their first-quarter earnings this week, with Microsoft and Alphabet reporting on Wednesday, Meta on Thursday, and Tesla after the bell on Tuesday. These reports will be closely watched for signs of profitability in the face of rising costs and a challenging economic environment.
Investors will also be keeping an eye on other major companies set to report earnings this week, including ExxonMobil and Johnson & Johnson. The market rally in stocks this year has been driven largely by tech giants, but profits from outside the tech sector could provide a much-needed boost.
The absence of further escalation from Middle East tensions led to demand for havens easing, with the yield on 10-year US Treasury notes rising and oil and gold both falling. The US dollar was steady against a basket of six other currencies.
