European indices are set for a recovery this week following a decline last week. Despite the downturn, regional equities have performed well in February.

French stocks remain down for the week, but the overall sentiment is improved, aided by higher US futures. The S&P 500 futures have risen by 0.4%, driven by strong performance in tech shares, particularly Nvidia, whose earnings are anticipated after market close.

US indices continue to show declines for the week, but the S&P 500 is maintaining its position above the 100-day moving average, currently at 5,946.

This uptick in US futures provides a welcome shift in sentiment following last week’s losses. European markets felt the downward pull, yet February’s broader trend remains clear: regional equities have shown resilience. The recent pressure on French stocks has not completely reversed, but the mood has improved—helped in part by the recovery in US markets.

Nvidia’s upcoming earnings release is attracting attention, particularly given the firm’s recent role in pushing tech shares higher. A 0.4% gain in S&P 500 futures reflects optimism in that space, reinforcing the idea that investors are still willing to take on risk in certain areas, especially those tied to artificial intelligence. The tech sector’s strength may serve as an early signal of further upside potential if earnings do not disappoint.

Despite losses earlier in the week, US markets are holding key levels. The S&P 500 remains above its 100-day moving average, now standing at 5,946. That suggests underlying support, as buyers have stepped in before markets could fall further. A break below this point would be watched closely, but for now, stability around this level could encourage further buying.

For traders navigating the next few weeks, attention should remain on momentum in tech-heavy indices. The performance of Nvidia in the post-earnings session will be closely followed, as it could determine sentiment across global equities. If the reaction is positive, it may provide the push needed to extend recent gains, particularly in European markets where the mood has been improving.

Meanwhile, any signals from central banks could tip the balance. Interest rate expectations continue to shift, with traders weighing how sticky inflation might influence policy moves. That factor will remain in focus, especially if economic data supports or challenges current market expectations.

For now, the short-term direction remains tied to whether tech strength persists and whether broader indices can maintain support levels.