Investing.com — U.S. stock index futures were slightly lower in evening trading on Monday but settled down after a sharp rally on Wall Street as investors returned to technology stocks ahead of major earnings reports from the technology sector.
Wall Street stock indexes are still trading well below the record highs hit last week as a combination of profit-taking and inflows into cyclical sectors hit technology stocks in recent trading.
The second-quarter earnings season is widely expected to shape technology companies’ performance in the coming weeks.
The index was down 0.1% to 5,605.50 points and down 0.2% to 19,955.75 points as of 19:51 ET (23:51 GMT). It was flat at 40,680.0 points.
Alphabet, Tesla set to report second-quarter results
All eyes are now focused on the earnings reports of technology giants Alphabet Inc. (NASDAQ:) and Tesla Inc. (NASDAQ:), due to be released on Tuesday.
Alphabet is set to offer further clues about how the Wall Street internet giant is benefiting from artificial intelligence and how much it’s spending on developing the new technology.
Tesla’s results are expected to show how the electric car maker is weathering a sharp decline in demand, but they will also focus on hopes for AI-powered self-driving cars and robotaxis.
In addition to the two tech giants, many other major Wall Street companies are scheduled to report earnings on Tuesday. Visa Inc. (NYSE:), Coca-Cola (NYSE:), Texas Instruments Incorporated (NASDAQ:), Lockheed Martin Corporation (NYSE: General Electric Company (NYSE: United Parcel Service Inc (NYSE:) and Freeport-McMoran & Gold Inc (NYSE:).
Wall Street benefits from tech recovery, but uncertainty remains
A massive return to technology stocks helped Wall Street rally on Monday, though major stock indexes are still well below recent highs.
The rose 1.1% to 5,564.41 points, the rose 1.6% to 18,007.57 points, and the rose 0.3% to 40,415.44 points.
Growing optimism that the Federal Reserve will cut interest rates in September has led investors to move money to areas that are likely to benefit from an economic recovery.
However, uncertainty about the US political outlook has increased after President Joe Biden announced he would not seek re-election and would instead endorse Vice President Kamala Harris as the Democratic presidential nominee.
Recent polls have shown Republican nominee Donald Trump ahead of Biden and Harris, but it is unclear whether Harris’ nomination will change that.
Speculation about a Trump presidency also encouraged capital inflows into cyclical sectors.
