US stock index futures stabilized in early Monday trading following sharp losses on Wall Street over the past two weeks, driven primarily by weakness in the technology sector. Investor attention has now shifted toward the upcoming Federal Reserve meeting and a series of earnings reports from major US corporations scheduled for this week.
S&P 500 futures rose 0.13%, while Dow Jones futures advanced 0.28%. In contrast, Nasdaq 100 futures declined 0.04%. The stabilization followed two consecutive weeks of losses for the S&P 500 and Nasdaq Composite, largely driven by declining valuations among technology and artificial intelligence companies. Meanwhile, the Dow Jones Industrial Average received support from increased investor demand for defensive sectors, including healthcare, utilities, and industrials.
Markets are closely monitoring third quarter earnings announcements from major corporations, particularly technology giants such as Alphabet, Microsoft, and Amazon. Investors will focus on the direction of artificial intelligence investments and the impact of substantial capital expenditure on corporate profit margins. Concerns continue to grow over whether these investments can generate sufficient returns to justify their costs, alongside increasing worries about mounting debt among cloud service providers.
On the monetary policy front, the Federal Reserve is preparing to begin its scheduled meeting, with markets widely expecting interest rates to remain unchanged. Investors will closely examine any signals regarding the future path of interest rates as inflationary pressures persist. Upcoming press conferences and economic releases, particularly gross domestic product data and the Personal Consumption Expenditures Price Index, are expected to provide further insight into the outlook for US monetary policy.
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