U.S. stock futures gained ground on Monday, buoyed by the technology sector as investors sought to ignite a rally that had been dampened by uncertainty surrounding potential interest-rate cuts by the Federal Reserve. This week, all eyes are on the upcoming highly anticipated jobs report, which is set to provide crucial insights into the labor market.
Futures for the Nasdaq 100 increased by 0.7%, while the S&P 500 saw an uptick of 0.4%. In contrast, contracts for the Dow Jones Industrial Average remained largely unchanged, reflecting its reduced exposure to technology stocks.
The Nasdaq Composite struggled recently, closing last week lower as major tech companies such as Alphabet, Amazon, Broadcom, and Meta faced losses. While the S&P 500 and Dow managed slight weekly gains, both indices experienced significant declines on Thursday.
As the economic data calendar resumes following a hiatus, investors are particularly eager for the government’s report on September’s job market, set to be unveiled on Thursday. This report comes in the wake of a more cautious tone expressed by Fed officials, raising questions about imminent changes to interest rates.
In addition to the jobs report, this week marks the conclusion of the earnings season with key updates, especially in the artificial intelligence sector. Nvidia is scheduled to release its quarterly results on Wednesday, an event that will attract significant attention. Retail giants like Walmart, Home Depot, Target, Lowe’s, and Gap are also set to announce their financial performance, which will provide valuable insights into consumer spending patterns.
Meanwhile, the cryptocurrency market is on watch as Bitcoin has experienced a steep decline, dropping nearly 30% over the past month from a peak above $126,000 to below $94,000. This downturn has wiped out many of this year’s gains, suggesting that investor sentiment is shifting toward a more conservative approach.
The upcoming economic indicators and earnings reports could pave the way for renewed confidence in the markets, encouraging a more optimistic outlook for investors.