US Futures Rise as Traders Await Tech Earnings, Fed Decision

US stock futures extended their rally, recovering from an AI-driven decline earlier this week as traders shifted focus to major tech company earnings and the Federal Reserve's interest rate decision.

Nasdaq 100 futures gained 0.4%, while S&P 500 futures remained steady. T-Mobile US Inc. surged 5% premarket after strong financial results. In Europe, the Stoxx 600 index jumped 0.6% as ASML Holding NV soared 11% on better-than-expected order bookings, boosting semiconductor stocks.

The yield on 10-year Treasuries fluctuated slightly around 4.53%. Investors eagerly await earnings reports from Microsoft Corp., Meta, and Tesla Inc. to assess potential weakness in the technology sector following concerns raised by Chinese startup DeepSeek's AI model.

The Federal Reserve is expected to hold interest rates, but Chairman Jerome Powell's remarks will be closely scrutinized for insights into the potential inflationary impact of trade tariffs and other White House policies.

Traders have increased bullish bets, anticipating dovish signals from Powell, including potential rate cuts in March. JPMorgan Chase's latest survey shows the largest net long position in US government debt in nearly 15 years.

Central banks globally are considering easing measures, with the Bank of Canada likely to reduce rates by 25 basis points on Wednesday. The European Central Bank is also expected to cut rates soon.

Tech Earnings in Focus

The so-called Magnificent Seven tech companies continue to report strong profits, outpacing the broader market. However, growth is projected to slow down to its lowest pace in almost two years. Microsoft's AI spending will be a key focus as the company reports its earnings.

Key Market Movers

* Apple Inc. is collaborating with SpaceX and T-Mobile US to integrate Starlink support in its latest iPhone software.
* Novo Nordisk A/S's Ozempic received US approval for treating chronic kidney disease in patients with type 2 diabetes.
* Sony Group appointed President Hiroki Totoki as CEO, effective April 1.
* American Axle & Manufacturing Holdings Inc. agreed to merge with Dowlais Group Plc.

Market Snapshot

Stocks
* S&P 500 futures: Flat
* Nasdaq 100 futures: +0.4%
* Dow Jones Industrial Average futures: Flat
* Stoxx Europe 600: +0.6%

Currencies
* Bloomberg Dollar Spot Index: +0.1%
* Euro: -0.3% vs. USD
* British pound: -0.2% vs. USD
* Japanese yen: Flat vs. USD

Cryptocurrencies
* Bitcoin: +2.4%
* Ether: +2.8%

Bonds
* 10-year Treasury yield: 4.53%
* 10-year German yield: 2.55%
* 10-year British yield: 4.58%

Commodities
* WTI crude: -0.7%
* Spot gold: -0.3%