U.S. equity futures moved higher Monday, signaling a modest recovery after recent weakness in major indices. Investors are preparing for a busy week of interest rate announcements and large corporate earnings reports, with technology and AI-related spending in focus.
At 4:21 p.m. (Bangkok Time), contracts linked to the S&P 500 gained 0.31%, while Dow Jones Industrial Average futures rose 262 points, or 0.50%. Nasdaq-100 futures advanced 0.24%.
The firmer start followed two consecutive weekly declines for both the S&P 500 and the Nasdaq Composite, as selling pressures hit technology shares and artificial intelligence-linked valuations. The Dow fared better, supported by demand for more defensive areas of the market, including healthcare, utilities and industrial companies.
Central banks are set to dominate the week’s macro calendar. The Federal Reserve will issue its policy decision on Wednesday, followed by the European Central Bank on Thursday and the Bank of Japan on Friday.
Fed funds futures indicate traders see a 90% probability that U.S. policymakers leave rates unchanged at the current 3.75% to 4% target range. Even so, investors remain alert to any tougher policy language from the Fed, particularly with U.S. inflation proving persistent.
Energy markets weakened on Monday. Brent crude futures dropped 2.34% to $114.38 a barrel, while U.S. West Texas Intermediate fell 2.45% to $100.74. Brent had reached its strongest level since April on Friday after reports said the U.S. and Israel could be considering strikes on Iran after the midterm elections.
Corporate results will also be closely watched. Verizon Communications and Welltower are scheduled to report Monday, followed Tuesday by Visa, Boeing and Coca-Cola. Alphabet and Microsoft are due Wednesday, while Amazon.com reports Thursday. Samsung and SK Hynix are also scheduled later this week.
The megacap technology reports are expected to offer fresh detail on the AI trade, including whether heavy investment in AI infrastructure is continuing to pressure profit margins.
