U.S. stock index futures increased this Sunday. This week is very important to the market as a whole, as investors await new inflationary and employment data for future market direction, as the stock market moves out of a very volatile period of time.
The S&P 500 futures increased by 0.1%, while NASDAQ Futures(NQ000) advanced by 0.2%. Dow Jones Industrial Average Futures also rose by approximately 60 points or 0.2%, preserving the momentum after achieving a historic milestone on Friday.
The increase in the Futures recorded a dramatic trend last week. Dow(DJIA) was closed above 50,000 for the first time in history and capped a gain of 2.5% within a week. Nevertheless, the broader market trends reveal an entirely different picture, as despite the Friday increase, the S&P 500 closed the week with a loss of 0,1 %while NASDAQ Composite reported a loss of 1.8% during the same period.
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Currently, the tech sector is experiencing a unique divide. Although hardware and AI chipmakers like Nvidia have reported an increase in stock prices, the software stocks have been hit badly. This is raising concerns about whether advancement in AI technologies is generating existential threats for software models and companies.
The data indicates that Microsoft (MSFT) decreased by 5%, Salesforce(CRM) reported a loss of 9%, Oracle(ORCL) fell by 11%, and ServiceNow(NOW) decreased by 14%, respectively.
The majority of analysts at Wedbush explain this reckoning scenario for software as an exaggerated one. Since these analysts argue that these software giants will eventually become part of this ongoing AI revolution. On the other hand, some other experts argue that the new wave of AI is now clearly distinguishing between the winners and losers rather than lifting all boats.
After falling below $64,000 on Thursday, Bitcoin has recovered again and has been trading at $70,000 since the weekend. Although it is resilient compared to other crypto but trading at quite low price than its record high price of $126,000 in October.
The precious metals, including gold and silver, after following a volatile week, also gained on Sunday as investors consider them safe amid geopolitical uncertainty.
Both Brent crude futures and WTI also dropped by 0.8%, indicating pressure due to possible US military actions against Iran following stalled nuclear talks and fresh sanctions.
What’s Next
The major focus of the market is the release of the January Job Report and Consumer Price (Inflation) data on Wednesday and Friday. Although the experts have anticipated a slight increase in hiring, any indication of stubborn inflation would rattle investors.
Moreover, the earnings reports of consumer brands, including McDonald’s, Coca-Cola, and T-Mobile is expected in the upcoming week, providing fresh signs on the health of consumers worldwide.
