The market sentiment is cautious as traders await key earnings reports.

Stock futures opened slightly higher, reflecting a cautious optimism among traders.

The Dow Jones Industrial Average futures dipped slightly, while S&P futures saw a modest increase and Nasdaq 100 futures rose.

This comes after a challenging week for the major indices, which have retreated from their recent highs.

Investor sentiment has been influenced by concerns about interest rate trajectories.

Federal Reserve Chair Jerome Powell's recent comments indicated that the central bank is not in a rush to lower rates.

This contributed to last week's market selloff.

The focus is now shifting towards upcoming earnings reports, particularly from Nvidia.

The earnings season has yielded a mixed bag of results so far, with many companies exceeding earnings per share expectations.

Bank of America has revised its year-end target for the S&P 500.

As the market navigates through these earnings reports, there is a growing conversation around potential sector rotation.

Analysts are beginning to see opportunities in cyclicals and high-dividend yielding stocks.

The market's trajectory will likely depend on the outcomes of the upcoming earnings reports and broader economic indicators.