Nasdaq leads market gains ahead of U.S. services data

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Nasdaq leads market

Highlights

U.S. futures rose, led by Nasdaq 100.
Tech shares led after recent chip-sector pressure.
Services data could shape the market’s rate outlook.
Fed minutes due Wednesday remain in focus.

Tech futures drive the move

Nasdaq 100 futures rose 1.04% to 29,863.75, S&P 500 futures climbed 0.45% to 7,562.00, and Dow Jones Industrial Average futures gained 0.07% to 53,220.00. The rise followed a holiday-shortened week that prompted investors to reassess positions in the market’s technology leaders, Yahoo Finance reported.

Tech shares had come under pressure in late June, with chip stocks leading the decline. Micron shares lost 19% last week, weighing on sentiment across the semiconductor group.

Still, Monday’s futures move showed that investors were not yet abandoning the AI-linked trade. JPMorgan strategists said the AI supercycle could help push the S&P 500 higher this year, even if the path remains uneven, according to Yahoo Finance.

Economic data returns to focus

The market’s next test is macroeconomic. Investors are watching U.S. services data for signs of whether economic activity is cooling after a disappointing June jobs report reset expectations for interest rates. Softer data could strengthen expectations that the Federal Reserve may avoid further rate increases, while stronger readings could keep policy uncertainty in place.

Fed minutes due Wednesday will also be closely watched. The release is expected to give investors more detail on the central bank’s thinking after its first meeting under Kevin Warsh, with markets looking for clues on inflation, growth, and the future path of rates.

The broader setup remains constructive, but less one-sided than earlier in the year. Analysts still see support from earnings and liquidity, yet recent volatility in AI and semiconductor shares has made investors more sensitive to any sign of slowing demand or overextended valuations.

AI trade faces another test

Monday’s rise matters because the Nasdaq is the clearest gauge of whether investors are willing to return to growth and technology shares after a volatile stretch. A rebound in futures suggests buyers are still prepared to support the AI theme, but the market is also waiting for confirmation from economic data and Fed signals.

The split between the Nasdaq’s 1.04% gain and the Dow’s 0.07% move shows that investors are favoring technology over blue-chip industrial exposure at the start of the week. That keeps the market’s rally dependent on a narrow but powerful group of tech and AI-linked stocks. Whether that leadership broadens will help determine how durable the second-half advance becomes.

Earlier, we reported that oil prices rise despite OPEC+ plan to increase output.

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