US stock futures were steady after Presidents’ Day, with S&P 500 up 0.1 percent and Nasdaq 100 down 0.2 percent. AI disruption and Federal Reserve rate cut expectations shape market sentiment.US stock futures were little changed in thin trading on Monday, February 16, with S&P 500 futures up around 0.1%, Nasdaq 100 futures down 0.2%, and Dow futures rising roughly 76 points, or 0.2%, as investors positioned for the week ahead.
US markets were closed earlier in the day for the Presidents’ Day holiday. The muted moves in futures follow last week’s softer-than-expected inflation data, which reinforced expectations that the Federal Reserve could begin cutting interest rates later this year.
Wall Street is coming off a weak stretch after the S&P 500 and Dow posted four losing weeks out of the last five, while the Nasdaq logged five straight negative weeks — its longest losing streak since 2022. Concerns over AI-led disruption across sectors such as real estate, trucking and financial services have weighed on sentiment.
Andrea Gabellone, head of global equities at KBC Securities, told Bloomberg, “The backdrop for equities is positive post CPI,” cautioning that there could be “more dispersion ahead as sentiment around key AI-exposed sectors is still very critical.”
The January consumer price index released on Friday, February 13, came in softer than economists expected, pushing US yields to their lowest levels since December and strengthening market bets for a rate cut as early as June or July.
Strategists remain divided on how AI disruption will reshape earnings. According to Bloomberg reports, a team at JPMorgan, led by Mislav Matejka, urged caution on stocks vulnerable to AI-driven “cannibalisation,” including software and business services firms.
“When you look at the current earnings season, the companies are showing 13% of growth,” Nataliia Lipikhina, head of EMEA equity strategy at JPMorgan, told Bloomberg TV. “Overall, this is the reason why we continue to be positive on the S&P.”
This week, investors will turn their focus to the minutes of the Federal Reserve’s January meeting on Wednesday (February 18) and the personal consumption expenditure (PCE) inflation report due Friday (February 20) for further clues on the policy path.
In cryptocurrencies, Bitcoin fell around 1.5% to about $68,505, extending its recent weakness after a weekend rally faded. Gold slipped below the $5,000-per-ounce mark as traders booked profits following earlier gains.
Trading volumes remained light globally, with mainland China markets also closed for the Lunar New Year holiday.
