U.S. stock futures slip as AI worries grow, with major tech earnings and the jobs report in focus

U.S. stock futures ticked down Sunday night as investors grew more cautious ahead of a heavy slate of earnings reports and economic releases, after technology stocks retreated following Microsoft’s results last week.

S&P 500 futures slid 0.7% to 6,915.25, while Nasdaq 100 futures dropped 0.9% to 25,428.75 as of 21:51 ET (02:51 GMT). Dow Jones futures were marginally lower, down 0.1% at 48,825.0.

Alphabet Amazon earnings loom amid AI worries

The move follows a weak finish for U.S. stocks last week, led by losses in the Nasdaq Composite as investors re-evaluated optimistic assumptions about artificial intelligence spending and its potential returns.

Market sentiment took a hit after Microsoft’s (NASDAQ:MSFT) earnings report, which, despite continued revenue growth, did little to ease concerns about the near-term benefits of its heavy investment in AI infrastructure.

The update pressured the broader tech sector and reignited worries that large-scale AI spending could take longer than expected to generate meaningful profits.

Adding to the unease, a Wall Street Journal report over the weekend said Nvidia’s (NASDAQ:NVDA) planned investment of up to $100 billion in OpenAI has been put on hold following internal deliberations at the chipmaker.

Focus now turns to upcoming results from other megacap tech companies, which are likely to influence market direction. Google parent Alphabet (NASDAQ:GOOGL) is set to report on Tuesday, with investors closely monitoring advertising performance, cloud momentum, and management’s outlook on AI-related capital spending.

Amazon (NASDAQ:AMZN) is scheduled to report on Thursday, with investors focusing on results from its Amazon Web Services cloud division and margin trends in its core retail operations.

Attention turns to the Fed nomination, with key jobs data also in the spotlight.

Beyond corporate earnings, investors are also parsing political and policy signals. President Donald Trump on Friday announced Kevin Warsh as his nominee for Federal Reserve chair.

Markets are assessing the implications of a Warsh-led Fed for interest rates, inflation management, and the trade-off between supporting growth and maintaining financial stability, at a time when policy guidance remains especially influential.

Upcoming economic data could further shape rate expectations. The U.S. January jobs report, due Friday, is expected to point to solid employment growth and an unchanged unemployment rate.

Sources: Investing