- US stock futures climbed in premarket trading on Monday ahead of a big week of earnings reports.
- Microsoft, Alphabet, Meta, and Tesla are all set to post their results for the first quarter of 2024.
- US GDP and inflation data could also move markets this week.
US stocks looked set to open higher on Monday, as investors geared up for a set of mega-cap earnings reports and economic data that'll offer more insight into how the Federal Reserve's battle against inflation is going.
S&P 500 futures were up 0.5% shortly before 6 a.m. ET, while Nasdaq 100 futures had climbed 0.6%. The Dow Jones Industrial Average was on pace to add 165 points.
Meanwhile, yields on 10-year US Treasury notes rose about four basis points to 4.66%, while the US Dollar Index — which tracks the greenback against a basket of six other currencies — traded flat.
Four of the so-called "Magnificent Seven" companies — Microsoft, Alphabet, Meta, and Tesla — are set to report their first-quarter earnings this week, as well as other big companies including ExxonMobil and Johnson & Johnson.
Investors will hope that the tech giants can give the market a much-needed boost, with artificial intelligence likely to be in focus.
"This week will be a key test for the market, which has lent on AI to drive the rally in stocks this year. But now it is crunch time, can AI deliver the goods? Will it drive strong profit growth at these tech giants?" Kathleen Brooks, research director at XTB, said.
"This is a busy week for US earnings reports, the market will also be wondering if we can expect to see a boost in profitability at companies outside of tech due to the effects of AI," she added.
US first-quarter GDP data is set to be published on Thursday, while Friday's reading of the Personal Consumption Expenditures inflation gauge will offer traders a further hint about the state of the economy in the face of aggressive Fed interest-rate hikes.