US stock futures rose on Monday as investors returned to technology shares following a punishing sell-off, helped by lower oil prices and easing Treasury yields.
Nasdaq 100 futures gained 1.19% or 336 points, S&P 500 futures advanced 0.55% and Dow futures edged up 0.03%.
The moves followed a 4.5% weekly slump in the Nasdaq Composite, while the S&P 500 lost 2% and the Dow gained 0.7%.
Chipmakers were rebounding, but concerns about debt-funded AI infrastructure remain unresolved. Earnings from Meta, Tesla and Netflix will now test whether investors have reason to rebuild exposure to expensive growth stocks.
5 things to know before Wall Street opens
1. Nasdaq futures lead a selective recovery
The Nasdaq’s advance marks a tentative reversal after investors spent last week pulling money from highly valued AI companies.
The semiconductor sector was coming off nine consecutive losing sessions, its longest run since 2006.
IG analyst Chris Beauchamp viewed the retreat more as a rotation out of crowded positions than proof the technology rally had broken.
Still, falling share prices have not resolved questions about returns on vast data-centre spending.
2. Intel leads chipmakers higher after JPMorgan upgrade
Nvidia gained about 1.1% before the bell, Broadcom rose 2.3% and CoreWeave added 1.3%. Micron also recovered, while Intel jumped roughly 3.8% after JPMorgan upgraded the stock to neutral from underweight.
JPMorgan analyst Harlan Sur sees an improving turnaround at Intel but remains wary of its shrinking processor market share and underdeveloped external foundry operation.
The rebound therefore looks selective rather than a wholesale dismissal of AI financing risks.
3. Cheaper oil and lower yields take pressure off valuations
Brent crude fell about 1.8% to $107 a barrel after Washington eased some sanctions on Russia, raising hopes of additional fuel shipments.
The 10-year Treasury yield slipped to 5.085%, a welcome retreat for technology companies whose valuations depend heavily on future earnings.
But Washington plans to review the economic impact of the policy over 60 days, while attacks around the Strait of Hormuz continue to threaten shipping.
Relief from inflation and borrowing costs could therefore prove fragile.
4. China beats growth forecasts but consumption remains weak
China’s economy expanded 4.5% year on year in the third quarter, accelerating from 4.3% and beating the 4.4% consensus.
September industrial production rose 5.5%, against just 1.1% growth in retail sales. Property investment fell 20.6% in the first nine months.
ANZ strategist Xing Zhaopeng warned that the recovery remains vulnerable because fiscal support and domestic demand are not yet dependable.
Export-led momentum is welcome for global manufacturers but is not the same as a consumer-led rebound.
5. Meta and Tesla face the AI spending question
Meta and Tesla report on Wednesday, following Netflix and General Motors on Tuesday.
Meta’s spending on AI infrastructure and returns from its new business tools will be closely watched after the sector’s financing scare.
Tesla faces scrutiny over the cost of autonomous-driving and robotics programmes, as well as whether strong deliveries translate into profits.
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