S&P futures edged downwards on Monday morning as investors anticipated significant economic data and a new set of earnings reports, following a turbulent week that concluded with the Dow Jones Industrial Average achieving an important milestone. S&P 500 futures experienced a decline of 0.26%, whereas Nasdaq 100 futures saw a decrease of 0.45%. Futures associated with the Dow Jones Industrial Average declined by 46 points, representing a decrease of 0.09%. The recent fluctuations occur subsequent to the significant recovery of the major averages on Friday, which followed considerable declines experienced earlier in the week. The decline was initiated by a sell-off in the technology sector, primarily driven by software equities. Bitcoin experienced a significant decline before regaining some ground as investors adopted a risk-averse stance. In the previous session, the 30-stock Dow Jones Industrial Average experienced a notable increase of 1,200 points, equivalent to approximately 2.5%, achieving its inaugural close above 50,000 after reaching that milestone for the first time during intraday trading. The S&P 500 experienced an increase of approximately 2%, while the Nasdaq Composite concluded the day with a gain exceeding 2%.

Bitcoin surged past $70,000 on Friday, recovering from a dip below $61,000 the previous night, while software stocks like Salesforce experienced gains. Overall, the iShares Expanded Tech-Software Sector ETF experienced a notable increase of 3.5%, representing the fund’s initial day of gains since the conclusion of the previous month, when it had entered bear market territory. “After an eight-day losing streak, buyers finally stepped back into the software space on Friday, underpinning a much-needed relief rally as the tech sector approached key support near the November lows,” stated Adam Turnquist. “Although this represents progress, the wider technology sector continues to oscillate within a range until it can firmly surpass the peaks established in December.”

“For the broader market to make sustainable progress, renewed tech participation will likely be essential,” he also said, adding that he anticipates the index will have some trouble reaching 7,000 without more participation from tech, especially software. The economic calendar appears sparse on Monday; however, several Federal Reserve officials, notably Governors Christopher Waller and Stephen Miran, are scheduled to deliver remarks later in the day. On Wednesday, market participants will be closely monitoring the postponed January jobs report released by the Bureau of Labor Statistics. The release, originally slated for last Friday, was delayed as a result of the partial government shutdown. It also follows the report from ADP last week indicating that private payrolls rose by only 22,000 in January, significantly underperforming expectations.

Economists expect the forthcoming jobs report to indicate an increase of 55,000 in January. The January consumer price index reading, which experienced delays due to the shutdown, is scheduled for release on Friday, with expectations pointing to a 2.5% annual rate. The recent market rotation away from technology may recur this week, contingent upon the favorable outcomes of the upcoming earnings releases. Coca-Cola and Ford Motor are both scheduled to announce their results on Tuesday.