US Stock Futures Rise as Chip Sector Stabilizes Ahead of Alphabet Earnings

U.S. stock futures advanced on Monday as investors returned to technology shares following last week’s broad selloff, while attention shifted to upcoming corporate earnings and continued geopolitical tensions in the Middle East.

Futures linked to the S&P 500, Dow Jones Industrial Average, and Nasdaq-100 each gained about 0.4% in premarket trading. The Nasdaq-100, which had fallen to its lowest level in more than two months during the previous session, recovered as semiconductor-related stocks stabilized.

Technology shares remained in focus as investors evaluated whether major artificial intelligence infrastructure operators could moderate spending on AI data centers and computing capacity in the coming quarters. Such investments have been a key driver of revenue growth and optimistic guidance across the semiconductor industry.

Market attention is also turning to Alphabet’s earnings report, scheduled for Wednesday. Investors are expected to closely examine the company’s capital expenditure outlook, particularly its planned investments in artificial intelligence infrastructure, which could provide further insight into demand trends across both semiconductor manufacturers and enterprise software companies.

Meanwhile, energy markets remained under pressure as escalating military tensions involving the United States and Iran continued to raise concerns over potential disruptions to oil exports from the Middle East. Elevated crude oil and fuel prices have increased uncertainty around inflation and global supply chains.

In the fixed-income market, U.S. Treasury yields remained below their recent highs after pulling back in recent sessions, providing some support for equity valuations.

Financial stocks also continued to outperform after a series of stronger-than-expected quarterly earnings from major U.S. banks reinforced confidence in the sector despite broader market volatility.

The combination of resilient corporate earnings, moderating bond yields, and renewed interest in technology shares helped improve market sentiment at the start of the trading week, although geopolitical risks and expectations for continued AI investment remain key factors influencing investor positioning.