Investing.com-- U.S. stock index futures fell slightly in evening deals on Monday, steadying after a sharp rebound on Wall Street as investors returned to technology stocks ahead of key earnings from the sector.
Wall Street indexes were still trading well below record highs hit last week, as a mix of profit-taking and rotation into more economically-sensitive sectors battered tech in recent sessions.
The second quarter earnings season is now widely expected to dictate tech’s trajectory in the coming weeks.
S&P 500 Futures fell 0.1% to 5,605.50 points, while Nasdaq 100 Futures fell 0.2% to 19,955.75 points by 19:51 ET (23:51 GMT). Dow Jones Futures were flat at 40,680.0 points.
Alphabet, Tesla set to report Q2 earnings
Focus was now squarely on upcoming earnings prints from tech majors Alphabet Inc (NASDAQ:GOOGL) and Tesla Inc (NASDAQ:TSLA), due on Tuesday.
Alphabet is set to offer more cues on how Wall Street’s internet giants are benefiting from artificial intelligence, as well as how much they are spending on developing the new technology.
Tesla’s earnings are set to show how the electric vehicle maker is navigating a sharp decrease in demand, while focus will also be on its promises of AI-driven autonomous driving and robotaxis.
Beyond the two tech giants, a slew of other Wall Street majors are set to report on Tuesday, including Visa Inc (NYSE:V), Coca-Cola Co (NYSE:KO), Texas Instruments Incorporated (NASDAQ:TXN), Lockheed Martin Corporation (NYSE:LMT), General Electric Company (NYSE:GE), United Parcel Service Inc (NYSE:UPS) and Freeport-McMoran Copper & Gold Inc (NYSE:FCX).
Wall St benefits from tech rebound, but uncertainties persist
A large rotation back into technology stocks saw Wall Street rebound on Monday, although benchmark indexes still remained well below recent peaks.
The S&P 500 jumped 1.1% to 5,564.41 points, while the NASDAQ Composite surged 1.6% to 18,007.57 points. The Dow Jones Industrial Average rose 0.3% to 40,415.44 points.
Growing optimism that the Federal Reserve will cut interest rates in September saw investors pivot into sectors more likely to benefit from an economic recovery.
But uncertainty over the U.S. political outlook increased after President Joe Biden said he will not seek reelection, instead endorsing Vice President Kamala Harris as the Democratic presidential nominee.
Recent polls showed Republican nominee Donald Trump was polling ahead of Biden and Harris, although it was unclear whether Harris’ nomination will shift this trend.
Speculation over a Trump presidency also drove flows into economically sensitive sectors.