U.S. stock futures retreated modestly on Sunday evening, with investors taking a defensive stance ahead of a busy week for corporate earnings and macroeconomic releases. By 19:36 ET (01:36 GMT), S&P 500 Futures were down 0.2% at 6,955.75, Nasdaq 100 Futures had fallen 0.3% to 25,607.75, and Dow Jones Futures traded 0.1% lower at 48,984.0.
Market caution follows a recent pullback in technology shares that accelerated after Microsoft reported results last week. While Microsoft’s update showed ongoing revenue growth, the company’s reporting did not fully allay investor concerns about how quickly large-scale investment in artificial intelligence infrastructure will translate into profits. The reaction to Microsoft’s report weighed on broader technology names as market participants reassessed the timing of returns from AI-related spending.
Investor attention is shifting to earnings from other major technology companies that could further influence market direction this week. Alphabet, the parent of Google, is scheduled to publish results on Tuesday. Market watchers will focus on advertising trends, the pace of cloud revenue growth, and commentary about AI-related capital expenditures. Amazon will release quarterly results on Thursday, with particular scrutiny on performance at Amazon Web Services and margin dynamics in its core retail operations.
Sentiment was further affected over the weekend by reporting that Nvidia’s proposed investment of up to $100 billion in OpenAI has stalled after internal concerns were raised at the chipmaker. That development added to doubts about the near-term pace of major AI investments and their immediate impact on earnings across technology suppliers and cloud providers.
Beyond company reports, developments on the policy front also drew investor focus. President Donald Trump named Kevin Warsh as his nominee for Federal Reserve chairman on Friday, prompting market participants to consider what a Warsh-led Fed could imply for interest rate policy, inflation control, and the trade-offs between growth and financial stability. These considerations arrive at a time when markets remain sensitive to signals about future policy direction.
Economic releases later in the week could further shape expectations for monetary policy. The U.S. January employment report, due on Friday, is expected to show steady job growth and an unchanged unemployment rate. Traders and analysts will be parsing that report for indications about labor market strength and how it might affect rate trajectories.
The current market backdrop combines corporate earnings risk, uncertainty about the timing and profitability of AI-driven investments, and evolving policy considerations tied to the Fed nomination and upcoming jobs data. These factors together are driving a cautious tone in futures markets as participants await new information that could clarify near-term economic and corporate prospects.