U.S. Stock Futures Mixed as Investors Brace for Fed Meeting, Big Tech Earnings

U.S. stock index futures steadied in early Monday trading as Wall Street looked to regain its footing after a bruising two-week period of technology-driven losses. Investor focus is now squarely on a pivotal week that includes a Federal Reserve policy meeting and a slate of high-stakes corporate earnings reports.

By 02:33 ET (06:33 GMT), S&P 500 Futures edged up 0.13% to 7,669.25, and Dow Jones Futures rose 0.28% to 52,542.0. In contrast, Nasdaq 100 Futures dipped a slight 0.04% to 29,105.75, according to Investing.com data.

Wall Street Seeks Footing After Tech Sell-Off

The cautious open follows two consecutive weeks of losses for both the S&P 500 and the NASDAQ Composite. The declines were primarily driven by a sharp pullback in technology and artificial intelligence valuations, as investors grew concerned about the high costs of AI infrastructure development and whether it would generate sufficient returns.

In contrast, the Dow Jones Industrial Average found some support during this period, buoyed by a rotation into defensive sectors such as healthcare, utilities, and industrials.

Big Tech Earnings on Deck

Third-quarter earnings season intensifies this week, with results from several market-moving companies expected to provide fresh catalysts. While reports are due Monday from Verizon and Welltower, the main events will be the megacap technology firms reporting later in the week.

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Investors will be closely watching for updates on the AI trade and potential margin dilution from heavy investment spending when these companies report:

• Wednesday: Alphabet Inc. (GOOGL) and Microsoft Corporation (MSFT)
• Thursday: Amazon.com Inc. (AMZN)

Other major companies reporting this week include Visa Inc., The Boeing Co., and The Coca-Cola Co. on Tuesday.

Federal Reserve Decision Looms

The Federal Reserve is set to begin its two-day policy meeting on Tuesday, with the central bank widely expected to hold interest rates unchanged. This follows a 25 basis point hike in September that brought the benchmark rate to 4.0%, according to the source material.

Despite the expected pause, market participants will be wary of any potentially hawkish signals from the central bank, particularly amid persistent inflation. According to Investing.com, expectations for a 25 basis point hike in December have risen recently. Investors will parse the post-meeting statement and a press conference from Fed Chair Kevin Warsh on Wednesday for further cues on the monetary policy outlook. Key inflation and growth data, including the third-quarter GDP report and the PCE price index, are also due this week.