U.S. stock futures recorded modest gains by the end of the session, extending Wall Street’s strong start to February, supported by notable strength in technology and semiconductor stocks. The improvement comes as investors prepare to test market sentiment through earnings reports from several major companies scheduled for the second half of the week.
During the session, futures tied to the S&P 500, Nasdaq 100, and Dow Jones posted slight advances, signaling the continuation of positive momentum that previously pushed the S&P 500 to close near its record highs, despite recent market volatility.
This move marked the S&P 500’s first advance after three consecutive losing sessions, which had been driven by concerns over elevated valuations in parts of the technology sector following strong multi year rallies. Despite this, the index remains up nearly 2% year to date, although it continues to trail the Russell 2000, which has gained more than 6%.
The S&P 500 finished just shy of its all time high, while both the Nasdaq and the Dow Jones delivered solid gains. Trading volumes increased noticeably, reflecting broad investor participation across the market.
On the economic front, PMI data showed U.S. factory activity expanding for the first time in a year, providing an additional boost to market sentiment. Meanwhile, the VIX volatility index declined, signaling a relative easing of investor anxiety despite ongoing caution.
The primary support for the market came from renewed strength in artificial intelligence and semiconductor stocks, as investors continue to bet on long term demand for advanced computing power and data infrastructure. This helped restore confidence in the technology sector following recent profit taking.
Attention now turns to the earnings calendar, which could play a decisive role in shaping market direction in the coming days. AMD is set to report results after Tuesday’s close, with investors closely watching updates on demand for AI focused chips. Alphabet is scheduled to release earnings on Wednesday, followed by Amazon on Thursday, placing the spotlight on digital advertising trends, cloud-computing growth, and consumer spending patterns.
These expectations follow a mixed market reaction to Microsoft’s earnings last week. While the company delivered solid operational results, management’s comments on the pace of cloud growth and heavy AI investment raised concerns among some investors, prompting a reassessment of the near term returns on AI spending and triggering selective profit taking within the sector.
Beyond corporate earnings, markets are also closely monitoring signals from the Federal Reserve regarding the future path of interest rates, alongside key economic data. However, uncertainty remains elevated after the announcement that the January U.S. jobs report has been delayed due to the partial government shutdown, temporarily depriving markets of one of the most influential economic indicators.
The energy sector faced notable pressure as oil prices declined following comments from U.S. President Donald Trump suggesting progress in talks with Iran, easing concerns over potential supply disruptions. Lower energy prices, in turn, supported airline stocks, which posted strong gains as fuel cost pressures eased.
Overall, markets are navigating a delicate phase, where earnings driven optimism is balanced against cautious anticipation of economic data and monetary policy developments. This backdrop leaves the coming sessions highly sensitive to surprises on both the corporate and macroeconomic fronts.
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