U.S. stock futures rose sharply on Monday, led by technology shares, as falling oil prices and a retreat in Treasury yields provided relief after last week’s selloff and renewed demand for artificial-intelligence stocks.
At 8:34 a.m. ET, Dow futures were up 0.84%, S&P 500 futures gained 0.67% and Nasdaq 100 futures advanced 1.05%, according to Reuters.
The rebound follows a volatile week for U.S. equities, when rising energy prices, higher Treasury yields and renewed concerns about the pace of AI development pressured growth stocks.
Oil Retreat Eases Pressure on Bonds
Oil prices fell more than 2% Monday to their lowest levels in 11 days as investors assessed the possibility of diplomatic progress between the United States and Iran during this week’s United Nations General Assembly and a partial recovery in Saudi crude exports.
Brent crude fell to around $101.20 a barrel, while the expiring October WTI contract traded near $97.80. Saudi oil shipments through the Strait of Hormuz have increased as Saudi Aramco compensates for disruptions to its East-West Pipeline.
The decline in crude helped ease pressure on government bonds, with the 10-year U.S. Treasury yield slipping back below 5%. Lower benchmark yields can provide support for equity valuations, particularly in technology, while reducing financing pressure on companies investing heavily in AI infrastructure.
AI Stocks Lead the Rebound
Semiconductor and AI-related stocks were among Monday’s strongest premarket performers.
Intel climbed 5.7%, Marvell Technology gained 2.8%, while Meta Platforms and Dell Technologies advanced 2.3% each. AMD was also higher in premarket trading.
The gains mark a partial reversal from last week, when warnings from leading AI executives about the risks associated with increasingly capable models contributed to a reassessment of the sector.
For now, evidence that spending on AI remains strong is providing support to technology shares. South Korean trade data showed exports during the first 20 days of September reached a record, supported by strong semiconductor demand.
Meta Gains as AI Optimism Returns
Meta shares advanced more than 2% in premarket trading as technology stocks broadly recovered.
The rebound comes as investors continue to assess the enormous capital requirements associated with AI development, including spending on semiconductors, data centers, networking equipment and computing infrastructure.
Accenture climbed 4.6% after announcing a partnership with Anthropic involving $2 billion in AI evaluation investment, adding another indication that corporate spending on artificial intelligence continues despite last week’s concerns about AI safety and the pace of development.
Fed Outlook Remains a Risk
The improvement in equities comes despite continued uncertainty over U.S. monetary policy.
After the Federal Reserve raised interest rates last week for the first time in three years, markets were assigning roughly a 50% probability of another increase next month on Monday morning, according to CME FedWatch data cited by Reuters.
That leaves Wall Street balancing two competing forces: easing energy prices and Treasury yields are providing short-term relief, while inflation and the prospect of additional monetary tightening remain important constraints on valuations.
