US stock futures incurred minor losses on Monday evening but firmed after a significant pivot to tech shares ahead of earnings reports from search giant Alphabet Inc. and electric vehicle (EV) maker Tesla Inc. triggered a major recovery across the country’s benchmark indexes.
S&P 500 futures fell 0.15% to 5,602.50 points, while the Nasdaq 100 Futures dropped 0.30% to 19,941.75 points. The Dow Jones Futures also declined 0.08% to 40,661.00 points.
Investors’ return to tech stocks enabled a rebound on Wall Street on Monday. However, the key US indexes still have a considerable distance to cover from their record highs reached the previous week as profit-taking and the shift to economically sensitive sectors weighed on tech in recent sessions.
The S&P 500 index closed 1.08% higher at 5,564.41 points on Monday, while the tech-heavy Nasdaq Composite rose 1.58% to 18,007.57 points. The Dow Jones Industrial (DJI) Average ended the session with a 0.32% gain at 40,415.44 points.
Stronger expectations for a September interest rate cut from the Federal Reserve also prompted investors to focus on sectors that might receive support from the world’s largest economy bouncing back.
Still, investors are watching the growing uncertainty over the upcoming US elections following President Joe Biden’s decision to drop out of the race and Vice President Kamala Harris succeeding him as the Democratic presidential candidate.
Alphabet, Tesla Q2 Earnings in Focus
Markets now expect the second-quarter earnings season to determine the tech sector’s direction in the coming weeks.
Earnings from Alphabet and Tesla are both set for a Tuesday release. The Google LLC parent is seen providing further hints on how US internet giants are capitalizing on artificial intelligence’s (AI) potential and the extent to which they invest to build such advanced technology.
Alphabet will follow a solid first quarter, which involved its first dividend of $0.20 per share and a stock buyback of $70 billion.
The Austin-based carmaker’s earnings are expected to provide cues on how it has managed weaker demand and the measures being implemented by the company and chief executive Elon Musk to return to growth after reporting its largest revenue slide since 2012 in the first quarter.
Investors will also seek updates about Tesla’s plans for AI-powered self-driving technology and robotaxis.
Other major Wall Street players, including Visa Inc., Coca-Cola Co., and United Parcel Service (UPS) Inc., will publish their second-quarter earnings after the bell on Tuesday as well.
