Nasdaq futures rally ahead of earnings and Fed meeting

U.S. stock futures rose sharply on Monday, led by the Nasdaq, as investors looked ahead to a busy week of corporate earnings and the Federal Reserve's next policy meeting. The gains reversed some of the previous week's losses, with technology shares regaining favor after a recent sell-off.

The rally was driven by a rebound in semiconductor stocks, which had been under pressure in recent sessions. Chipmakers led the broader market higher, providing a lift to the Nasdaq and the S&P 500. The Dow Jones Industrial Average also advanced, though its gains were more modest.

This week is critical for markets, with earnings reports from several mega-cap tech companies, including Microsoft, Alphabet, Amazon, and Meta Platforms. Their results will test whether the recent rally in tech stocks is sustainable. Additionally, the Federal Reserve's two-day meeting begins Tuesday, with a decision on interest rates expected Wednesday. Investors are watching for any signals on the pace of future rate cuts.

The market's focus on earnings and the Fed comes after a volatile period. Last week, stocks fell as rising bond yields and geopolitical concerns weighed on sentiment. The rebound in chip stocks, which are seen as a bellwether for the tech sector, has helped stabilize markets ahead of these key events.

Analysts expect the Fed to hold rates steady at this meeting, but the accompanying statement and press conference will be scrutinized for clues about the economic outlook. Meanwhile, strong earnings from major tech companies could reinforce the narrative that the sector's fundamentals remain solid despite high valuations.