The major U.S. index futures indicate a nearly unchanged opening on Yesterday, suggesting that stocks may exhibit a lack of direction after the substantial gains observed in last Friday’s trading session. Market participants might pause to evaluate the recent fluctuations, characterized by a technology-driven decline in the middle of last week, followed by a significant recovery observed on Friday. The absence of significant U.S. economic data could lead to some traders remaining inactive as they await the publication of several crucial reports in the near future. The monthly jobs report from the Labor Department, which experienced a delay owing to the recent government shutdown, is expected to attract significant attention. The report is anticipated to indicate an increase in employment by 70,000 jobs in January, following a rise of 50,000 jobs in December, with the unemployment rate projected to remain steady at 4.4 percent. Reports on retail sales and consumer price inflation are expected to garner significant attention, given that the data may influence the trajectory of interest rates.
Following a significant decline in recent sessions, equities experienced a notable rebound during trading on Friday. The major averages exhibited significant upward momentum, with the Dow achieving a closing level exceeding 50,000 for the first occasion. The major averages attained new peaks late in the session, subsequently relinquishing some gains as the day drew to a close. The Dow increased by 1,206.95 points, representing a rise of 2.5 percent, reaching a level of 50,115.67. The Nasdaq experienced a gain of 490.63 points, or 2.2 percent, climbing to 23,031.21. Meanwhile, the S&P 500 rose by 133.90 points, equivalent to a 2.0 percent increase, settling at 6,932.30. During the week, the Dow experienced an increase of 2.5 percent, in contrast to the S&P 500, which saw a slight decline of 0.1 percent, and the Nasdaq, which fell by 1.8 percent. The rally on Wall Street primarily indicated a phase of bargain hunting, as certain traders sought to acquire stocks at lower valuations in the wake of recent market weakness.
The recent pullback has been significantly influenced by tech stocks, resulting in the Nasdaq reaching its lowest closing level in more than two months. The S&P 500 reached its lowest intraday level in more than a month during early trading on Thursday, subsequently recovering some of its losses. Positive sentiment may also have been generated in reaction to a report from the University of Michigan indicating that consumer sentiment in the U.S. has unexpectedly continued to improve in February. The University of Michigan reported that its consumer sentiment index increased to 57.3 in February, following a rise to 56.4 in January. The index was anticipated by economists to decline to 55.5. The unanticipated rise resulted in the consumer sentiment index attaining its peak since registering 58.2 in August 2025. The unexpected increase in the consumer sentiment index coincided with a notable rise in optimism among consumers holding the largest stock portfolios.
The rebound by the broader markets occurred despite a significant decline in shares of Amazon, which fell by 5.6 percent. Amazon faced scrutiny following the announcement of fourth quarter earnings that fell short of expectations, alongside a forecast for 2026 capital expenditures that significantly exceeded analyst projections. Airline stocks experienced a significant upward movement during the trading session, as evidenced by the NYSE Arca Airline Index climbing by 7.1 percent, reaching its highest closing level in more than three years. Computer hardware and semiconductor stocks experienced a notable rebound after a period of recent weakness, resulting in the NYSE Arca Computer Hardware Index and Philadelphia Semiconductor Index increasing by 6.8 percent and 5.7 percent, respectively. A notable rise in the price of gold has also led to considerable strength in gold stocks, as evidenced by the 5.5 percent increase in the NYSE Arca Gold Bugs Index. Networking, financial, and oil service stocks exhibited robust upward movements, aligning with the positive trends observed in the majority of other significant sectors.