US stock index futures edged lower after hours on Monday as investors braced for a pivotal Federal Reserve meeting and a wave of earnings reports from major technology companies.
The recent rally in tech stocks lost momentum this week, with the sector experiencing significant declines over the past two weeks. This shift comes amid profit-taking, rotation into cyclical sectors, and disappointing earnings from Alphabet Inc.
As of late evening trading, major US stock index futures were down slightly. S&P 500 Futures, Nasdaq 100 Futures, and Dow Jones Futures all showed modest declines, each falling by a fraction of a percent. This downward movement reflected cautious sentiment among investors ahead of key events later in the week.
Microsoft Corp. is set to kick off the next round of significant tech earnings after the market close on Tuesday. While solid earnings growth is expected and driven by AI-related products, investors will scrutinize expenditure levels and the impact of AI demand on the bottom line.
Other tech giants scheduled to report this week include Meta Platforms Inc. on Wednesday and Apple Inc. on Thursday. Additional notable earnings releases are expected from Amazon.com Inc., Advanced Micro Devices Inc., Merck & Co., Procter & Gamble Co., and Intel Corp.
Major indexes moved minimally during Monday’s regular trading session. The S&P 500 and NASDAQ Composite rose 0.1%, while the Dow Jones Industrial Average slipped 0.1%.
The Federal Reserve’s upcoming meeting, concluding Wednesday, is another focal point for investors. While the central bank is widely expected to maintain current interest rates, market participants will closely analyze any signals regarding potential future rate cuts.
CME Group’s FedWatch tool indicates that markets are currently pricing in a 25 basis point rate cut by September.
