On Friday, stock indices closed sharply lower. The S&P 500 fell by 1.07%, while the Nasdaq 100 declined by 0.69%. The Dow Jones Industrial Average plunged by 1.51%.

Futures on US stock indices have risen slightly with the start of a new week after concerns about tech company profits and significant investments in AI prompted another sell-off on Wall Street last Friday. However, this rebound should be viewed with caution given the ongoing uncertainty regarding interest rates and the economic outlook. Investors remain concerned that the Federal Reserve may be slow to lower rates, especially if inflation does not continue to decrease steadily toward the target level.

Attention is now focused on upcoming economic data that may provide a clearer picture of the health of the US economy. Particularly important will be inflation and labor market data. Positive results could boost confidence that the economy can withstand pressures, while disappointing data could exacerbate recession fears.

The technology sector, which has recently seen a significant influx of funds, remains a key factor influencing market sentiment. Investors are closely monitoring earnings reports and overall company outlooks to assess the justification for high valuations and the potential for further growth. While the substantial investment in artificial intelligence is promising, it also raises concerns about the profitability of these investments and potential cannibalization of existing business models.

Global risk appetite is also declining amid skepticism regarding whether the tech stocks, which propelled global indices to record highs this year, can continue to justify their high valuations and aggressive investments in AI. Much of this investment reflects a long-term bet on technology, which may take years to yield significant commercial returns, heightening uncertainty in the short term.

It is clear that the Christmas rally cannot begin amidst new concerns about AI valuations.

From the recent sell-off of Nvidia Corp. shares to the drop in Oracle Corp. shares last week following news of rising AI expenses, along with deteriorating sentiment toward companies utilizing OpenAI, signs of skepticism are only intensifying.

In other market segments, gold has risen for the fifth consecutive day as risk-averse investors have abandoned their purchases. The price of the yellow metal has increased by more than 60% this year, and silver prices have more than doubled—both metals are demonstrating their best annual performance since 1979. Copper, zinc, and aluminum have also risen as investors refocus on prospects for a tighter market scenario in 2026.

Regarding the technical picture of the S&P 500, the main task for buyers today will be to overcome the nearest resistance level of $6,854. This will help the index gain ground and pave the way for a potential rally to a new level of $6,874. Another priority for bulls will be to maintain control over $6,896, which would strengthen buyers' positions. In the event of a downward movement amid reduced risk appetite, buyers must assert themselves around $6,837. A break below that level would quickly drive the trading instrument back to $6,819 and open the path to $6,801.