US Stock Futures Steady During Earnings Week, Rate Cut Expectation Shifts

US stock futures were mostly unchanged to lower on Monday as the market prepares for a significant week of corporate earnings while the realization takes hold that rate cuts may not come as soon as previously expected. Treasury yields rose on the back of relatively hawkish comments from Federal Reserve Chairman Jerome Powell, with investors also awaiting further corporate earnings reports and speeches from other Federal Reserve officials.

In the last trading session on Friday, Wall Street's major indices closed higher, with the S&P 500, Dow Jones Industrial Average, and Nasdaq 100 all reaching new record highs. Meta Platforms surged over 20%, leading gains in both the S&P 500 and Nasdaq 100 after it reported fourth-quarter results that exceeded expectations and provided first-quarter revenue guidance above consensus estimates. Amazon also rose more than 7% following upbeat fourth-quarter results from the Seattle-based e-commerce leader.

Attention is now turned towards the upcoming US ISM Non-Manufacturing PMI data set to be released shortly. The Nasdaq and other major indices continue to break new records, maintaining strong momentum. The next target for the bullish long-term channel appears to be near 18,000, with 17,200 acting as the current support level.