US Stock Futures Extend Rebound as Big Tech Earnings, Fed Decision Loom

US stock futures advanced, extending their recovery from an AI-driven downturn earlier this week. Traders shifted their focus towards upcoming earnings reports from Big Tech giants and the Federal Reserve's interest rate decision.

Key Market Movers:

* Nasdaq 100 futures gained 0.4%.
* S&P 500 futures edged higher.
* Stoxx 600 index in Europe rose 0.7%, driven by a surge in semiconductor stocks following ASML Holding NV's strong order bookings.

Big Tech Earnings to be Scrutinized:

Traders will closely monitor results from Microsoft Corp., Meta, and Tesla Inc. for indications of weakness after Chinese startup DeepSeek's AI model stirred market concerns.

Fed Interest Rate Decision in Sight:

The Federal Reserve is widely expected to hold interest rates steady, but Chairman Jerome Powell's comments will be scrutinized for insights on inflation risks stemming from potential trade tariffs and other policies.

US Treasuries Gain:

US Treasury yields ticked higher ahead of the Fed rate decision, buoyed by bullish bets that Powell may signal a March rate cut.

JPMorgan Survey: Bullish on US Government Debt:

JPMorgan Chase's latest client survey indicates the largest net long position in US government debt in nearly 15 years.

Central Banks Signal Easing:

Central banks globally are expected to maintain an easing bias, with the Bank of Canada likely to cut rates by a quarter point on Wednesday. The European Central Bank is also anticipated to reduce rates tomorrow.

Tech Earnings Growth Slowing:

Despite ongoing profits from major tech companies, growth is projected to decelerate to its slowest pace in almost two years. Microsoft's AI spending and progress in artificial intelligence products will be a key focus during its earnings report.

Corporate Highlights:

* Apple reportedly collaborated with SpaceX and T-Mobile US to integrate Starlink support in its latest iPhone software.
* Novo Nordisk's Ozempic expands its usage to treat chronic kidney disease in patients with type 2 diabetes.
* Sony Group appoints President Hiroki Totoki as CEO.
* SEB AB shares decline in Stockholm after announcing a lower-than-expected dividend.

Key Events This Week:

* US Fed rate decision (Wednesday)
* Tesla, Microsoft, Meta, ASML earnings (Wednesday)
* Canada rate decision (Wednesday)
* Eurozone ECB rate decision, consumer confidence, unemployment, GDP (Thursday)
* US GDP, jobless claims (Thursday)
* Apple, Deutsche Bank earnings (Thursday)
* US personal income & spending, PCE inflation, employment cost index (Friday)