European markets are poised to start the trading week with modest declines as investors turn their attention toward the earnings reporting period.

Technology sector shares may draw scrutiny following Nvidia partner Hon Hai Precision reporting a stronger-than-anticipated 40 percent increase in quarterly revenue while noting further growth in AI demand.

U.S. equity futures showed broad gains after the Dow Jones Industrial Average posted a record-setting week.

After a strong first half, market participants are watching to see if the AI-driven rally can continue through the third quarter and potentially into 2027.

Artificial intelligence will remain central to market discussions as focus shifts from optimism to actual monetization efforts.

Significant uncertainties persist over whether heavy spending on AI infrastructure will generate profits and deliver returns quickly enough to justify elevated valuations.

Economic data releases including index readings from S&P Global and the Institute of Supply Management along with minutes from the Federal Reserve's latest meeting will be closely watched this week after last week's soft June jobs report.

With yields near 5 percent, upcoming U.S. Treasury auctions for 10-year and 30-year bonds could influence crypto and other risk assets.

Asian markets finished mixed while the U.S. dollar held steady near a two-week low after recording its largest weekly drop since April.

Gold eased half a percent to $4,151 an ounce after posting its first weekly advance since May on reduced odds of near-term Federal Reserve rate cuts.

Brent crude futures remained below $72 a barrel at their lowest levels since late February as shipments continued through the Strait of Hormuz and OPEC+ approved a further 188,000 barrel-per-day increase in its collective production target from August.

U.S. stock markets were closed on Friday for the Independence Day holiday.

European shares reached a record high on Friday and recorded a fourth straight week of gains as weak jobs data raised hopes that the Federal Reserve will hold off on monetary tightening for now.

The pan-European Stoxx 600 index climbed 0.7 percent. Germany's DAX surged 0.8 percent, France's CAC 40 advanced 0.4 percent and the U.K.'s FTSE 100 added 0.3 percent.