Market Faces Continued Losses
The stock market remained under pressure as futures tied to major indices showed minimal movement following another day of losses. On Monday evening, S&P 500 futures hovered near the flatline after the index recorded its third consecutive losing session. Similarly, Nasdaq-100 futures edged up by only 0.1%, while Dow Jones Industrial Average futures saw a slight increase of 57 points, also reflecting a 0.1% gain.
During the regular trading session on Monday, declines in key technology Shares weighed down the broader market, with both the S&P 500 and Nasdaq Composite closing in negative territory. The continued downward trend follows last week’s broader sell-off, which has left investors wary of further declines.
Tech Sector Pulls Markets Lower
The downturn in technology shares played a crucial role in dragging the market lower. Defense and artificial intelligence company Palantir saw a sharp drop of over 10%, extending its losses from last week. Meanwhile, Microsoft shares declined by 1% following a TD Cowen report that indicated the company is reducing its spending on data centers. Another tech giant, Nvidia, also experienced a 3% dip in its stock price, with investors anticipating its quarterly earnings report, set to be released on Wednesday after the closing bell.
The recent weakness in the tech sector has also pushed the Nasdaq Composite into negative territory for the year. However, some market analysts remain optimistic about the long-term potential of artificial intelligence stocks. Doug Clinton, a managing partner at Deepwater Asset Management, shared his perspective on a news website’s “Closing Bell,” suggesting that skepticism around the AI sector may be premature. He emphasized that the AI-driven market boom is likely to continue for another two to four years.
Economic Data and Earnings Reports in Focus
Beyond the performance of individual stocks, investors are keeping a close watch on key earnings reports and economic data releases scheduled for the week. Retail giant Home Depot is set to announce its earnings results before the market opens on Tuesday, offering insights into consumer spending trends and the broader retail sector.
In addition to corporate earnings, economic indicators are expected to play a significant role in shaping market sentiment. The latest U.S. consumer confidence report, set to be released at 10:00 a.m. ET on Tuesday, will provide insights into consumer sentiment and spending behaviors. According to economists surveyed by Dow Jones, the Conference Board’s consumer confidence index is expected to decline slightly, with a projected reading of 102.3 for February, down from January’s 104.1.
Later in the week, more economic data will be released, including January’s personal consumption expenditures (PCE) price index, scheduled for Friday. This index is closely monitored by the Federal Reserve as a key measure of inflation, and its results could influence future monetary policy decisions.
With stock market facing ongoing volatility, investors will be watching earnings reports and economic indicators closely, seeking signs of stability and potential areas for growth in the months ahead.
