U.S. stock index futures slipped on Sunday as investors prepared for a busy week featuring corporate earnings and key economic data. Microsoft’s recent results sparked a tech sector pullback, raising doubts about AI spending payoffs.

Alphabet and Amazon are set to report earnings this week, with markets closely watching their AI capital expenditure and cloud performance. Analysts are gauging whether big tech firms can sustain margins amid heavy infrastructure investments and softening ad trends.

The Federal Reserve nomination of Kevin Warsh and Friday’s nonfarm payrolls report add to the week’s stakes. Investors are parsing potential policy shifts and labor market strength, which could shape near-term rate outlooks and equity valuations.

Equity futures showed muted moves, with Nasdaq 100 futures down 0.3%. Market participants are bracing for volatility as earnings from megacap tech names intersect with macroeconomic signals.