Recent York Stock Exchange, January 12, 2026 (Angela Weiss/AFP)
U.S. Stocks began the week on a cautious note Monday, as futures slipped amid continued uncertainty surrounding the race to develop artificial intelligence, as investors await key employment and inflation data that could reshape the path of interest rates in the world’s largest economy.
Following a turbulent week that rattled technology stocks and raised questions about the viability of massive capital expenditures by the “Magnificent Seven” companies, Wall Street appeared to be cautiously taking a breath. While the S&P 500 and Nasdaq rebounded Friday, after three consecutive losing sessions, the rally failed to convince many that it signaled the start of a sustainable upward trend, particularly with renewed scrutiny of artificial intelligence bets.
As of 6:23 a.m. Eastern Time on Monday, Dow Jones futures were down approximately 0.13%, the S&P 500 fell 0.28%, and Nasdaq 100 futures were down about 0.48%, indicating continued pressure on technology stocks, according to Reuters data.
Technology giants are once again under the microscope, after recent results revealed plans for massive capital spending this year. Companies like Amazon, Google, Meta, and Microsoft are expected to spend nearly $650 billion in the race for dominance in artificial intelligence, raising concerns among investors about the actual returns on this spending. The substantial investment underscores the competitive landscape in the AI sector.
Chip-related stocks also faced pressure, with Nvidia down roughly 1% before the open, as investors await its highly anticipated earnings later this month, which are seen as a key test for sector bets. Micron fell 3.5%, Broadcom declined 1.5%, and AMD (Advanced Micro Devices) was down about 1.1%, the agency reported.
Conversely, the Dow Jones closed above 50,000 points for the first time last week, supported by a shift in liquidity into other sectors less correlated with the artificial intelligence boom, while the compact-cap Russell 2000 index benefited from this trend.
Attention this week will turn to economic data, led by the January non-farm payrolls report, delayed due to the partial government shutdown, along with the upcoming Consumer Price Index. These two reports are viewed as key determinants of the timing of the first expected interest rate cut this year, currently priced in by markets for June, according to CME’s FedWatch tool.
Among individual U.S. Stocks, Eli Lilly rose 1.6% after Hims & Hers canceled the launch of a $49 weight-loss pill following legal threats, while the latter’s stock plummeted more than 15%. Apollo Global Management also climbed 1.5% after announcing a 13% increase in quarterly earnings, and Kroger jumped over 5% on reports of a new CEO appointment, Reuters reported.
