U.S. Stock Futures Rise Ahead of Holiday-Shortened Week as AI Optimism Lifts Tech

U.S. stock index futures edged higher on Sunday evening, pointing to a slightly stronger start for Wall Street as renewed optimism around artificial intelligence and a rebound in technology stocks helped support investor sentiment. S&P 500 futures climbed about 0.2% to 6,902 points, while Nasdaq 100 futures rose 0.3% to 25,647.75 points. Dow Jones futures were also modestly higher, gaining around 0.2% in early evening trading.

The positive tone follows an uneven finish to last week’s trading. The S&P 500 ended marginally higher, while the Nasdaq Composite outperformed with a weekly gain of roughly 0.5%, driven largely by a recovery in major technology and semiconductor names. In contrast, the Dow Jones Industrial Average declined about 0.7% over the same period, reflecting continued rotation within the market.

Trading volumes are expected to remain relatively light in the coming days as U.S. markets enter a holiday-shortened week. Wall Street is scheduled to close early on Wednesday and remain closed on Thursday for Christmas Day, a dynamic that often reduces liquidity and can amplify short-term price movements.

Technology stocks have remained a key focus after Micron Technology delivered a strong outlook last week, reviving enthusiasm for AI-related shares. The forecast helped ease recent concerns surrounding elevated valuations, heavy capital investment requirements, and whether long-term demand growth can justify current pricing levels across the sector.

Adding to the momentum, Oracle shares surged after reports that TikTok had agreed to sell its U.S. operations to a newly formed joint venture, with Oracle expected to play a central role in providing cloud and data infrastructure. The development boosted Oracle and contributed to broader gains among large-cap tech stocks.

Broader market sentiment also benefited from softer-than-expected U.S. inflation data released last week. The cooling consumer price index strengthened expectations that the Federal Reserve could cut interest rates sooner in 2026, pushing Treasury yields lower and providing additional support for equities. Investors continue to monitor signals around future monetary policy and leadership changes at the Fed, which remain important drivers for U.S. stock markets.