- U.S. stock futures showed mixed signals with tech stocks gaining and Dow futures slipping
- Tech optimism rose after AI firm Anthropic forecasted $190-$200 billion revenue by 2028
- Amazon, Alphabet, and chipmakers saw premarket gains amid strong AI-driven earnings
U.S. stock futures were pointing to a mixed start on Monday, with technology stocks leading gains while Dow futures edged lower as investors weighed softer inflation data, renewed Middle East tensions and a relatively quiet earnings calendar.
Nasdaq 100 futures rose 0.56% to 30,309.25, while E-mini S&P 500 futures gained 0.15% to 7,816.75. Dow Jones futures, however, slipped 0.10% to 53,751.
Here are three key reasons behind the mixed Wall Street cues:
Eyes on Fed
A batch of softer inflation data last week, coupled with a surprise decline in retail sales, has reduced expectations of a Federal Reserve rate hike at its September meeting. Traders are now pricing in roughly a 31% chance of a 25-basis-point hike, according to CME's FedWatch tool, sharply below the near-even odds of a hike versus a hold seen a week earlier.
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The softer inflation backdrop has supported risk appetite and helped the benchmark S&P 500 extend its winning streak to three weeks, with the index recently hitting a record close. The market will also scrutinise the Federal Reserve's latest meeting minutes, due Wednesday, for clues on the central bank's policy path.
AI optimism sends tech stocks higher
Technology stocks were providing the biggest lift to Nasdaq futures after a strong revenue forecast from AI company Anthropic reinforced optimism around the sector. Reuters reported on Friday that Anthropic, which is preparing for an IPO, has forecast revenue of roughly $190 billion-$200 billion for 2028, according to two people familiar with the company's financials.
The optimism spilled into major tech names. Amazon shares rose 1.3% and Alphabet gained 0.8% in premarket trading. Chipmakers were also stronger, with Micron Technology up 3.5% and Broadcom rising 1.2%.
Nvidia gained 0.5% after a report said it had scaled back plans to support a proposed OpenAI data-centre project in Ohio, easing some concerns around circular financing in the AI sector.
Tech stocks have faced pressure in recent months as investors questioned the returns on heavy AI spending. A strong second-quarter earnings season, however, has helped push the Nasdaq closer to record highs. Investors are now looking ahead to Nvidia's earnings next week for fresh evidence on whether the AI-driven rally can continue.
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Dow futures slip as investors stay cautious amid Middle East risks and retail earnings
The Dow was lagging as investors remained cautious ahead of a fresh batch of corporate results and developments in the Middle East. The cease-fire between the U.S. and Iran is set to expire Monday, while Tehran has called on Washington to accept defeat. President Donald Trump, meanwhile, described Iran as very evil and warned Americans to prepare for continued high fuel prices.
Progress towards peace talks remains limited, while tanker traffic through the strategically important Strait of Hormuz has remained halted. The uncertainty continues to keep oil prices and inflation risks on investors' radar.
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