U.S. stock index futures edged higher on Sunday evening, suggesting a mildly firmer open to the new week, as a rebound in technology stocks and renewed optimism around artificial intelligence supported sentiment.
S&P 500 Futures inched 0.2% higher to 6,902.0 points, while Nasdaq 100 Futures gained 0.3% to 25,647.75 points by 19:34 ET (00:34 GMT). Dow Jones Futures traded 0.2% higher at 8,535.0 points.
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Tech stocks in focus amid renewed AI optimism Wall Street ended last week on an uneven footing. The benchmark S&P 500 finished up about 0.1%, while the NASDAQ Composite rose roughly 0.5%, helped by a recovery in heavyweight technology and semiconductor stocks. The Dow Jones Industrial Average, however, fell around 0.7% over the week.
Trading conditions are expected to be subdued in the days ahead as U.S. markets move into a holiday-shortened schedule. Wall Street will close early on Wednesday and remain shut on Thursday for Christmas Day, a factor that typically dampens volumes and can exaggerate price swings.
Technology stocks were in focus last week after chipmaker Micron Technology (NASDAQ:MU) issued a strong forecast, rekindling enthusiasm for AI-related shares.
The outlook helped restore confidence in a sector that had recently faced pressure over stretched valuations, heavy funding needs, and concerns about whether demand growth could justify elevated prices.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Oracle Corporation (NYSE:ORCL) shares jumped last week after reports that TikTok had agreed to sell its U.S. operations to a new joint venture, with Oracle expected to play a key role in providing cloud and data infrastructure services.
The news lifted Oracle and added momentum to gains across large-cap technology stocks.
The rebound reflected continued confidence that demand for advanced chips remains strong, even as scrutiny of the sector’s valuations persists.
Fed cut bets support sentiment Broader market moves were further supported by last week’s U.S. inflation data. A surprisingly soft consumer price index reading reinforced expectations that the Federal Reserve could move more quickly to cut interest rates in 2026.
The data helped push U.S. Treasury yields lower, offering an additional tailwind to stocks.
Investors were also watching developments around the Fed’s leadership transition for fresh clues on the policy outlook.
With current Fed Chair Jerome Powell’s term set to end in May and President Donald Trump conducting interviews with several finalists, markets are parsing comments on interest rates and monetary strategy.
