US stock market futures edge higher after mixed performance in the previous week

The US markets closed mixed, with over 2.5% gains on the Dow Jones. The week witnessed high volatility with tech stocks under high selling pressure after the newer AI models sent shockwaves to software stocks. The NASDAQ index closed 1.8% lower, followed by the S&P500 at -0.10%. Additionally, the megacap companies like Meta, Microsoft, Amazon, and Alphabet also received investor scepticism over their record spending on AI infrastructure outlook for 2026.

On Monday morning, the US stock market futures traded in green and edged higher as investors looked ahead to heavy macroeconomic data and earnings reports in the coming week. The January jobs data will be released on Friday, delayed by the partial shutdown. On the earnings front, the Coca-Cola, Ford Motor, Robinhood, McDonald’s and Coinbase Global and others will report their earnings this week.

Technology stocks were the biggest losers in the previous week as investors believed that the record AI infrastructure spending could be a drag on earnings and cash flow. According to media reports, the megacap companies together have pledged close to $700 billion of spending in 2026. Following the scepticism, shares of megacap companies like Amazon fell 12% for the week, followed by Meta -7.8%, Microsoft at -6.7%, Alphabet -4.5%.

The dollar index cooled from higher levels on Friday and traded lower on Monday morning as well, ahead of crucial macroeconomic data releases this week. The Friday’s losses were largely driven by expectations of weaker jobs data, which raised the hopes for a rate cut in the coming policy meeting. However, hawkish commentary by a Fed Governor over the strong consumer confidence reading limited the losses.