Tech Stock Volatility as Financial Markets Hold Breath for Bank Earnings

U.S. stock index futures remained mostly flat as investors await quarterly bank earnings and economic data. Semiconductor stocks faced declines, while optimism persists around potential Federal Reserve rate cuts. Tech stocks showed slight premarket gains, with banks broadly reporting positive results despite some mixed performances.

U.S. stock index futures showed minimal movement as investors cautiously anticipate quarterly results from major banks like Morgan Stanley. The recent tech and oil stock selloff has added tension to the market, while hopes for Federal Reserve rate cuts maintain a positive outlook. Chip stock Nvidia saw a slight recovery, despite previous losses due to potential U.S. export restrictions on AI chips.

Semiconductor stocks delivered mixed performances, with ASML Holding cutting its sales forecast, impacting its U.S. listing, while Intel faced challenges after scrutiny from China's cybersecurity body. Meanwhile, significant shifts in major indices were negligible, indicating a market in wait-and-see mode as critical economic data is expected soon.

Amid the stock fluctuations, there's a positive sentiment driven by expectations of continued economic growth and possible interest rate reductions, although notable declines in both semiconductor and oil sectors apply pressure. The upcoming week promises to unfold insights into consumer health through retail data, further shaping market sentiment.

(With inputs from agencies.)