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U.S. Stock Futures Hold Steady as Investors Await Tech Earnings and Economic Data

U.S. stock index futures remained relatively stable in evening trading on Monday, with the earlier Wall Street rebound pausing as investors awaited earnings reports from major technology companies later in the week. Investors were also focused on upcoming U.S. interest rate indicators, particularly key inflation data that will likely influence the Federal Reserve’s policy outlook.

Concerns about potentially prolonged higher interest rates were a significant driver behind the recent downturn on Wall Street. S&P 500 Futures held steady at 5,049.0 points, while Nasdaq 100 Futures showed little change at 17,340.50 points by 19:07 ET (23:07 GMT). Dow Jones Futures edged up slightly to 38,487.0 points. Tesla Inc (NASDAQ:TSLA), the electric vehicle manufacturer, is scheduled to announce its quarterly earnings after Tuesday’s closing bell.

Analysts anticipate a challenging quarter for Tesla, following its first quarterly drop in deliveries in four years. Tesla’s stock declined 3.4% on Monday to a 15-month low, with an additional 0.3% drop in after-hours trading after the company reduced prices on its vehicles in key markets. This move raises the possibility of a new price competition and adds pressure on its profit margins. In addition to Tesla, this week will see earnings reports from four of the “Magnificent 7” stocks.

Meta Platforms Inc (NASDAQ:META), the parent company of Facebook, will report on Wednesday, followed by Microsoft Corporation (NASDAQ:MSFT) and Alphabet Inc (NASDAQ:GOOGL) on Thursday.

Market observers will be watching closely to see if these major companies can justify their strong valuations during the first quarter. Other notable technology companies, including Qualcomm Incorporated (NASDAQ:QCOM) and IBM (NYSE:IBM), are also scheduled to report earnings on Wednesday.

Beyond the tech sector, earnings reports from Visa Inc (NYSE:V), PepsiCo Inc (NASDAQ:PEP), General Electric Company (NYSE:GE), and AT&T Inc (NYSE:T) are expected on Tuesday and Wednesday. Wall Street Rebounds, Earnings Anticipation Curbs Gains After two weeks of significant declines, Wall Street indexes rebounded on Monday, with the tech sector leading the way as lower valuations attracted bargain hunters.

NVIDIA Corporation (NASDAQ:NVDA), a standout in the artificial intelligence sector, surged 4.4% during the session from a two-month low. However, the stock dipped 0.4% in after-hours trading. Meta, Microsoft, and Alphabet also saw some gains ahead of their earnings reports. Additionally, reduced concerns about a broader conflict in the Middle East contributed to the positive sentiment on Wall Street, with no immediate escalation observed between Israel and Iran following recent strikes.

The S&P 500 climbed 0.9% to 5,010.60 points on Monday, while the NASDAQ Composite jumped 1.1% to 15,451.31 points. The Dow Jones Industrial Average also rose 0.7% to 38,239.98 points. Upcoming Economic Data: PCE Inflation and Q1 GDP Later this week, investors will be closely watching the PCE price index data, which serves as the Federal Reserve’s preferred inflation measure.

This data release is expected to provide further insights into the direction of interest rates. Prior to that, GDP data for the first quarter of 2024 is anticipated to reveal the extent of U.S. economic growth resilience. Additionally, Purchasing Managers Index (PMI) data for April will be released, offering more signals about the current economic climate.

ServisFirst Bancshares (NYSE:SFBS) Reports Strong Q1 2024 Growth and Expansion Plans

ServisFirst Bancshares, Inc. (NYSE:SFBS) kicks off Q1 2024 with strong growth in net loans and an active loan pipeline. Henry Abbott, the bank’s Chief Credit Officer, highlighted improved credit quality, while Kirk Pressley, the Chief Financial Officer, announced the highest net interest income since Q1 2023 and a positive outlook for the year. 

With plans to enter a new market, ServisFirst has added nine new bankers to its team. Despite an increase in non-performing assets due to a single credit, the bank remains competitive. ServisFirst maintains a solid liquidity position, anticipating deposit growth and improved yields on earning assets. The bank’s customer base is expanding, driven by increased optimism and diminishing recession worries.