Last night, investor sentiment suffered as shares of Alphabet Inc dropped 7.7% after its AI chatbot Bard made an incorrect statement in a promotional video. This caused the S&P 500 and Nasdaq to decrease by over 1%.

Additionally, Federal Reserve officials stated that there will be more interest rate increases as the central bank works to regulate inflation. However, they didn't mention the recent strong jobs report potentially leading to more aggressive actions.

The focus of investors will now shift to the upcoming U.S. jobless claims report and inflation data due next Tuesday. The futures market predicts the Fed's target rate will reach 5.122% in July, a rise of 25 basis points from last week, and then decline to 4.804% by December, an increase of 40 basis points.

In the currency market, there was little movement. The dollar index declined by 0.1% but stayed close to a 1-month high at 103.33 against other major currencies, following last week's strong jobs and services data. The oil market saw U.S. WTI crude settle 0.1% lower at $78.39, while gold was slightly higher, trading at $1,879.55 per ounce.