U.S. stock index futures ticked higher before Sunday trading after the previous week’s pullback, as investors weighed a crowded lineup of events including a heavy earnings week, key labor data, and the U.S. midterm elections.
Technology heavyweights had come under pressure in the prior week on concerns tied to artificial intelligence infrastructure spending. The Nasdaq posted a 2% weekly decline and recorded its biggest monthly drop since March 2025. At the same time, flows into defensive shares helped the Dow Jones Industrial Average hold up better, with the index rising nearly 2% in October.
Futures rebound after a sharp tech-led sell-off
Recent earnings from major technology companies showed that large cloud service providers continued to raise capital spending on AI infrastructure, while free cash flow came under visible strain. The report said Amazon and Alphabet saw cash flow turn negative or worsen sharply, intensifying scrutiny over when heavy AI spending will convert into meaningful revenue and profit.
After all three major indexes fell in the previous week, futures were modestly higher before the open on Sunday. S&P 500 futures rose 0.3%, Nasdaq 100 futures gained 0.4%, and Dow futures added 116 points, or 0.2%.
Looking back at last week, the S&P 500 and the Dow each limited their losses to less than 1%, while the tech-heavy Nasdaq Composite fell 2%, reflecting softer risk appetite toward highly valued assets.
Capital rotates into defensive sectors
The pullback in technology shares did not lead to a broad exit from equities. Instead, money shifted toward sectors viewed as more defensive. While the Nasdaq was weak in October, the Dow was supported by inflows into areas such as healthcare and finished the month up nearly 2%.
The report said market research pointed to a preference for reallocating capital into traditional industries with steadier cash flow and more reasonable valuations when risks around a single technology theme rise, rather than moving into a full-scale sell-off. That left the broader market showing continued sector rotation and structural divergence.
Markets turn to elections, jobs data, and earnings
This week brings a dense run of political events and economic releases. The U.S. midterm elections are scheduled for Tuesday. The report said expectations in the market are that Democrats may win a majority in the House of Representatives, while the Senate race remains tight. It also noted that, historically, markets have usually absorbed policy uncertainty from election results over time.
On the macro side, the October nonfarm payrolls report is due Friday. Market estimates cited in the report put monthly job growth at 55,000. Apple, McDonald’s, and Qualcomm are also set to release quarterly earnings, offering more guidance on corporate profit trends this season.
With several macro variables converging at once, the broader financial market remains in a pattern of structural divergence and range-bound trading.
