US stock futures experienced a modest uptick on Monday night, signaling a potential stabilization effort by investors following consecutive weekly losses for the broader market. Futures tied to the S&P 500 advanced by 0.2%, while Dow Jones Industrial Average futures also rose by a similar margin. In contrast, contracts on the Nasdaq 100 remained largely unchanged as traders braced for a shortened trading week due to the closure of US markets on Monday in observance of Presidents Day.
The previous week saw the S&P 500 and the Dow Jones Industrial Average both decline by over 1%, while the tech-heavy Nasdaq Composite faced even sharper losses, declining more than 2%. This marked the Nasdaq’s fifth consecutive weekly drop, the longest losing streak since 2022. The ongoing struggles of the Dow and S&P 500 have led to declines in four out of the last five weeks, reflecting growing apprehensions regarding the disruptive potential of artificial intelligence across various industries, including wealth management, transportation, and logistics.
Even a cooler-than-expected January inflation report, released last Friday, failed to assuage investor concerns regarding economic growth and sector disruptions. While the consumer price index data came in lower than estimates—offering some relief from price pressures—the broader sentiment was still dominated by fears of economic instability.
Investors are poised for critical updates this week, particularly with the upcoming release of the Personal Consumption Expenditures (PCE) index on Friday, which will provide further insights into inflation trends. Additionally, the minutes from the Federal Reserve’s latest policy meeting are set to be disclosed on Wednesday, coinciding with ongoing speculation regarding Kevin Warsh’s “loyalty pledge,” which he reportedly signed as part of his candidacy to become the next Fed chair.
In corporate news, high-profile companies such as Walmart, DoorDash, and Molson Coors are expected to release earnings results throughout the week, adding another layer of focus for market participants navigating this uncertain landscape.
As the stock market braces for another day of trading, analysts will be closely monitoring these developments to gauge their impact on investor sentiment and market direction.
