U.S. stock futures inched lower Monday as traders prepared for a week dominated by tech earnings reports and key economic indicators. Micron is among the spotlight companies, with investors watching closely for signs of momentum in the artificial intelligence sector. Meanwhile, Indian IT stocks fell following the announcement of a new U.S. H-1B visa fee, and BYD shares dropped after reports that Warren Buffett’s Berkshire Hathaway fully sold its stake in the electric vehicle maker.
Futures show slight declines
By early Monday trading, Dow futures were down 87 points, or 0.2%, S&P 500 futures fell 12 points, or 0.2%, and Nasdaq 100 futures dropped 46 points, also 0.2%. Last week, major Wall Street indices closed at record highs for the second consecutive day, with trading volume reaching its highest point since April. The S&P 500 and Nasdaq Composite both recorded a third consecutive weekly gain, buoyed by the Federal Reserve’s 25-basis-point rate cut and indications of potential additional reductions.
Individual movers included FedEx, which rose after posting stronger-than-expected quarterly results, and Apple, which ticked up after JPMorgan Chase raised its price target.
Tech earnings to watch
Attention shifts this week to technology earnings, with analysts seeking insight into AI-driven growth trends. Micron (NASDAQ:MU) is scheduled to release results after Tuesday’s market close. Sentiment has been upbeat following strong performances from peers such as Broadcom (NASDAQ:AVGO) and Oracle (NASDAQ:ORCL), as well as supportive analyst previews, according to Vital Knowledge.
Other key tech companies reporting this week include Apple supplier Jabil, which anticipates strong demand for AI infrastructure, and consulting giant Accenture, which investors will watch for AI-related business impacts.
Visa changes weigh on Indian IT firms
In international developments, U.S. tech giants remained steady in early Frankfurt trading after the White House announced a $100,000 annual fee for H-1B visas. Companies including Microsoft, Alphabet, and Goldman Sachs cautioned employees about potential work disruptions.
Shares of Indian IT companies, including Tech Mahindra, Tata Consultancy, and Infosys, declined as a result, reflecting the heavy reliance on U.S.-based contracts. The visa fee, combined with President Trump’s recent 50% tariff on Indian oil imports, could add further challenges for the sector.
BYD shares drop after Berkshire Hathaway exit
BYD (USOTC:BYDDF) fell in both Hong Kong and mainland Chinese markets following news that Berkshire Hathaway had fully exited its position. Hong Kong-listed BYD shares lost 3.5% to HK$109.50, while mainland shares dropped 1%, contributing to a 1% decline in the Hang Seng index. Berkshire confirmed the divestment, which follows a gradual reduction of its stake since mid-2022 to less than 5% of BYD’s outstanding shares.
Gold nears record levels
Gold prices remained strong Monday, approaching last week’s record highs, as expectations of further Fed rate cuts bolstered investor interest in bullion. Spot gold rose 0.9% to $3,715.50 an ounce, while futures advanced 1.2% to $3,750.20/oz. Market focus remains on upcoming U.S. economic data, including the Fed’s preferred inflation measure, as well as comments from policymakers. Lower interest rates continue to benefit non-yielding assets such as gold, and broader metal prices have also seen gains following the Fed’s easing.
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