US stock markets moved higher on Monday as investors regained confidence after last week’s sharp technology selloff and turned their focus to a packed schedule of economic releases that could influence the next policy steps by the Federal Reserve. The S&P 500 and the Nasdaq Composite both advanced, while the Dow Jones Industrial Average edged slightly lower following recent record levels.
Trading on the floor of the New York Stock Exchange reflected a calmer mood after investors digested concerns that rapid advances in artificial intelligence could reshape competition across the software industry. Shares of software and digital services firms rebounded, helping lift broader benchmarks after several sessions of heavy pressure tied to margin worries and rising investment costs.
The S and P 500 software services segment posted strong gains as companies such as ServiceNow, Salesforce and CrowdStrike recovered part of last week’s losses. Market participants said bargain hunting played a role, with some investors viewing the recent pullback as excessive relative to longer term growth prospects.
Despite the rebound, caution remained evident. Major technology groups including Amazon, Alphabet, Meta and Microsoft are expected to commit vast sums toward artificial intelligence infrastructure this year. Investors continue to debate how quickly these expenditures will translate into sustainable revenue and profit growth.
Attention is now firmly on upcoming economic indicators. The January nonfarm payrolls report and the consumer price index are expected to provide fresh insight into labor conditions and inflation trends. These figures are especially important as markets weigh expectations for the first interest rate reduction of the year, currently projected for mid year based on futures pricing tracked by the CME Group.
Political leadership at the central bank is also in focus, with speculation around the timing of a leadership transition under US President Donald Trump and his nominee for chair, Kevin Warsh. Investors will also listen closely to comments from policymakers including Christopher Waller, Raphael Bostic and Stephen Miran.
Among individual movers, Kroger shares climbed after the company named former Walmart executive Greg Foran as its new chief executive. Meanwhile, results and corporate updates drove sharp swings elsewhere, underscoring that earnings season remains a key driver of short term market direction alongside macroeconomic data.
