US stock futures pointed to a strong open on Monday, with technology shares leading the charge as a drop in oil prices helped pull Treasury yields lower and revived risk appetite after a volatile week of central-bank tightening.
Nasdaq 100 futures rose about 1.1%, S&P 500 futures gained 0.6%, and Dow futures advanced 414 points, or 0.8%. Brent crude fell more than 2% toward $102 a barrel, while the 10-year Treasury yield eased to around 4.96%, down from above 5% last week.
AI stocks lead the rebound
The strongest premarket moves were in the AI complex. Intel jumped more than 5%, Marvell gained about 2.5%, Meta rose more than 2%, and Dell advanced nearly 3%. Accenture climbed around 6% after announcing a five-year AI safety partnership with Anthropic worth a combined $2 billion.
The moves suggest that last week's concerns about a potential slowdown in AI development have not translated into weaker spending expectations. Gabelli Funds portfolio manager Hendi Susanto told MarketWatch that infrastructure demand still appears stronger than supply, with customers continuing to secure multiyear hardware commitments.
Oil gives Wall Street relief
Brent fell more than 2% to around $102 a barrel, while WTI moved below $99 as Saudi exports recovered and hopes for diplomacy with Iran increased. That matters well beyond energy stocks. The recent oil surge had helped push inflation expectations and Treasury yields higher, tightening financial conditions for equities. The 10-year yield eased to about 4.96% on Monday from above 5% last week, reducing some of the valuation pressure on growth shares.
Trump and Xi move into focus
Thursday's Trump-Xi summit is becoming the week's biggest geopolitical event for markets. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng held preparatory talks in New York over the weekend, including discussions on trade, rare earths, and a proposed AI safety notification mechanism. The meeting could matter directly for technology shares because Washington and Beijing remain divided over advanced chips and AI controls. A more stable framework would reduce one source of uncertainty hanging over semiconductor supply chains.
Bitcoin strengthens the risk-on signal
Bitcoin traded above $85,000 after closing above its 50-week moving average for the first time in about 10 months. Coinbase rose around 5% before the bell, while Strategy gained more than 7%. Crypto is not driving the equity rally, but the move reinforces the broader improvement in risk appetite as oil and bond yields retreat. For more on crypto-related stocks, see this update on crypto stocks.
Fed speakers could reshape October rate bets
The Fed's first hike in more than three years is now behind investors, but the policy debate is not. Several officials are due to speak this week, with markets still split over whether another quarter-point increase arrives in October or December. ING strategist Francesco Pesole told The Wall Street Journal that stronger US data could push investors to price more October tightening. That makes every inflation, labour-market, and Fed communication important for the next leg in Treasury yields and, by extension, equity valuations.
As the week unfolds, traders will also watch for any further moves in oil and yields. A continued retreat in both could extend the rally, while any hawkish Fed surprises or geopolitical setbacks could quickly reverse sentiment. For context on how yields have impacted equities recently, see this analysis of the Dow's slip.
Investors are also keeping an eye on the AI trade after last week's volatility. The rebound in AI names suggests that demand for infrastructure remains robust, but valuations remain stretched. For a look at how one major chipmaker is faring, check Broadcom's recent slide.
Overall, the market is entering a pivotal week with multiple catalysts on the calendar. The combination of falling oil prices, easing yields, and a potential thaw in US-China relations could provide a tailwind, but the Fed's path remains uncertain. Traders will be parsing every data point and comment for clues on the next move.
This article is for informational purposes only and does not constitute financial advice.
