US equity futures edged slightly lower on Monday as investors adopted a cautious stance ahead of a critical week packed with delayed economic data, central bank commentary, and earnings updates, following a volatile stretch that culminated in a historic milestone for the Dow Jones Industrial Average. Futures tied to the S&P 500 slipped 0.2%, while Nasdaq 100 futures fell 0.3%, reflecting continued sensitivity around the technology sector. Dow futures declined by roughly 80 points, or 0.2%, after last week’s sharp rebound.
The subdued start to the week comes after a dramatic turnaround in the previous session, when US stocks staged a powerful recovery from earlier losses. The rebound was driven by renewed buying interest in technology and risk assets after a pronounced sell-off earlier in the week, particularly in software stocks. Bitcoin also experienced sharp volatility, plunging during the risk-off phase before rebounding strongly as sentiment stabilized.
Dow Jones Breaks 50,000 as Risk Appetite Returns
In Friday’s session, the Dow Jones Industrial Average surged by approximately 1,200 points, or 2.5%, marking its first-ever close above the 50,000 level after briefly touching that milestone intraday. The S&P 500 climbed nearly 2%, while the Nasdaq Composite rose more than 2%, underscoring a broad-based relief rally across equities.
Technology stocks played a central role in the rebound. Bitcoin reclaimed the $70,000 level on Friday, after briefly dipping below $61,000 the prior evening, signaling renewed risk appetite across digital assets. Software names also stabilized, with stocks such as Salesforce finishing higher. The iShares Expanded Tech-Software Sector ETF (IGV) jumped 3.5%, recording its first gain since late last month, when the fund had slipped into bear market territory.
After an eight-day losing streak, buyers finally stepped back into the software sector, triggering a much-needed relief rally as prices approached key technical support near November lows. However, he cautioned that the broader technology complex remains rangebound unless it can break decisively above December highs. Turnquist added that for the S&P 500 to make sustained progress toward the 7,000 level, stronger and more consistent participation from technology, especially software, will likely be essential.
IPO Optimism Adds a New Dimension to Market Sentiment
Against this backdrop, optimism surrounding US capital markets has been further bolstered by Goldman Sachs’ forecast of a powerful resurgence in IPO activity during 2026. According to the investment bank, US IPO proceeds could quadruple to $160 billion, with a potential range of $80 billion to $200 billion, signaling a reopening of the funding window on Wall Street after a prolonged slowdown.
Goldman Sachs views the potential IPO boom as both a reflection of improving market conditions and a catalyst for renewed risk-taking. The bank links the optimistic outlook to stronger equity markets, easing financial conditions, and improving growth expectations, while projecting that the number of IPOs could double to around 120 deals this year. For investors, the most market-sensitive aspect of the forecast lies in the possible listings of major private players such as SpaceX, OpenAI, and Anthropic, which could inject significant liquidity into markets and heighten sensitivity across technology and artificial intelligence stocks.
However, Goldman also flagged key risks. Persistent stock market volatility and wavering corporate confidence, particularly given the heavy presence of software firms in the IPO pipeline, could delay or derail listings if market conditions deteriorate. This underscores the importance of stability in tech valuations, which remain a cornerstone for both equity momentum and deal-making confidence.
Markets Look Ahead to Jobs Data and Inflation Signals
Looking forward, investors are closely watching the economic calendar. Confidence levels remain deeply depressed compared to historical norms, and expectations for the year ahead stay weak.
The focus intensifies midweek with the release of the delayed January nonfarm payrolls report, now scheduled for Wednesday after being postponed due to the partial government shutdown. The report takes on added significance following last week’s ADP data, which showed private payrolls rising by just 22,000 jobs in January, well below expectations. Economists surveyed by Dow Jones expect the official jobs report to show a gain of 55,000, a figure that could influence interest rate expectations and risk sentiment.
Attention will then turn to inflation data, with the January Consumer Price Index, also delayed by the shutdown, due on Friday. Consensus forecasts point to a 2.5% annual CPI reading, a number that could shape market expectations around the timing and pace of potential Federal Reserve easing.
A Market at a Crossroads
With equities rebounding sharply, the Dow reaching a historic level, and IPO optimism resurfacing, US markets enter the week at a critical juncture. Sustained gains may depend on renewed leadership from technology stocks, supportive economic data, and a stable macro backdrop. At the same time, volatility remains a defining feature, and traders are likely to stay nimble as markets digest fresh data and shifting expectations around growth, inflation, and liquidity in the weeks ahead.
