US stock futures remained flat, following a negative performance yesterday as the last rally loses steam as markets await tomorrow’s Non-farm Payroll data.
This week’s labor market data indicated a slowing economic activity and could continue to preserve the idea of a softer monetary policy, possibly leading to an early rate cut by March.
However, investors could remain concerned about the impact of prolonged high rates on economic activity and whether the Federal Reserve will readjust rates in a timely manner.
The upcoming Federal Reserve meeting could restore confidence in the stock market if a dovish stance is indicated.
The technology sector was the second-worst-performing sector yesterday. However, today, Alphabet was up by more than 2% in premarket trading, following the public launch of its new LLM model, Gemini, to vie with GPT-4.
Additionally, AMD is advancing by 2.5% in premarket, driven by the launch of its new AI training chip, competing with Nvidia.
AI technology could continue to preserve the development and growth of major tech companies, supporting valuations in the tech sector and aiding major US indices to hold their gains.
The energy sector continued its sell-off, as the oil industry was weighed by the long refuse of oil prices. Companies appreciate Exxon Mobil or Chevron could continue to extend losses as a result.
