U.S. equity futures point to a muted start on Monday, with markets struggling for clear direction after last week’s sharp late-session rebound.
Traders appear to be stepping back after a volatile stretch that saw technology shares drive a steep selloff midweek, followed by a strong recovery on Friday. With few major U.S. data releases scheduled at the start of the week, activity may remain cautious ahead of several high-profile economic reports due in the days ahead.
The spotlight is expected to fall on the Labor Department’s monthly employment report, which was postponed last week because of a brief federal government shutdown. Economists forecast that U.S. employers added around 70,000 jobs in January, compared with 50,000 in December, while the unemployment rate is seen holding steady at 4.4%.
Investors will also be watching upcoming releases on retail sales and consumer price inflation, as both could shape expectations for the future path of interest rates.
After sliding sharply over multiple sessions, stocks mounted a powerful comeback on Friday. All three major benchmarks posted strong gains, with the Dow Jones Industrial Average finishing above the 50,000 level for the first time.
The rally pushed indices to fresh intraday highs before some profit-taking into the close. The Dow advanced 1,206.95 points, or 2.5%, to 50,115.67, while the Nasdaq climbed 490.63 points, or 2.2%, to 23,031.21. The S&P 500 rose 133.90 points, or 2.0%, to end at 6,932.30.
For the week as a whole, the Dow gained 2.5%, while the S&P 500 slipped 0.1% and the Nasdaq fell 1.8%.
The rebound was largely driven by bargain hunting, with investors stepping in after the recent pullback. Technology stocks had led the earlier decline, dragging the Nasdaq to its lowest closing level in more than two months and briefly pushing the S&P 500 to its weakest intraday level in over a month on Thursday.
Sentiment also improved after a University of Michigan survey showed U.S. consumer confidence unexpectedly strengthened again in February. The consumer sentiment index rose to 57.3 from 56.4 in January, beating forecasts for a decline to 55.5 and marking its highest reading since August 2025. The gain was led by households with larger equity holdings.
The broader market rebound came despite a sharp drop in Amazon shares. Amazon (NASDAQ:AMZN) slid 5.6% after reporting slightly weaker-than-expected fourth-quarter earnings and projecting capital spending for 2026 well above analyst estimates.
Elsewhere, airline stocks staged a strong rally, with the NYSE Arca Airline Index jumping 7.1% to its best close in more than three years. Computer hardware and semiconductor shares also rebounded sharply, lifting the NYSE Arca Computer Hardware Index by 6.8% and the Philadelphia Semiconductor Index by 5.7%.
A surge in gold prices added further support, pushing the NYSE Arca Gold Bugs Index up 5.5%, while gains across networking, financial and oil services stocks helped fuel broad-based strength across most market sectors.
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