Wall Street enters the first full week of November with a cautious tone, as investors weigh whether Friday's sharp technology selloff was a temporary pullback or the start of a deeper correction driven by concerns over AI spending and elevated valuations. Early trading on Monday offered some relief, with US equity futures climbing across the board.
Nasdaq-100 futures gained roughly 240 points, or 0.85%, while S&P 500 futures advanced 0.5% and Dow futures traded 0.6% higher. The rebound follows Friday's steep decline, when the Nasdaq composite fell nearly 3% and the Philadelphia Semiconductor Index dropped more than 7%. Chip stocks, including AMD, Micron, and Nvidia, showed premarket gains as investors sought bargains. Intel, however, remained under pressure, down about 0.3% after plunging 28.58% following its third-quarter earnings report.
Overseas markets also provided encouragement. South Korea's Kospi climbed 2.24% on Monday, led by Samsung Electronics and SK Hynix, as regional tech sentiment improved.
Apple and Palantir earnings take center stage
After the closing bell on Monday, Apple and Palantir are scheduled to report quarterly results. Analysts expect Apple to deliver earnings of approximately $2 per share on revenue of around $113 billion. Investors will focus on demand for the iPhone 18 lineup and management commentary on artificial intelligence and services growth, in what will be John Ternus' first earnings call as CEO.
Palantir's results will also be closely watched after a turbulent week for AI-related stocks, as investors increasingly demand evidence that heavy investment in the sector is translating into sustainable earnings.
Oil retreats on hopes for Iran diplomacy
Crude prices fell more than 4%, with Brent trading around $108 a barrel and West Texas Intermediate (WTI) dropping below $100. The decline followed signs that President Donald Trump prefers giving diplomatic efforts with Iran more time rather than immediately escalating military action after the midterm elections. Talks involving Qatari mediators have helped ease some concerns about potential supply disruptions, although shipping risks in the region remain. Lower energy prices could also provide some relief to inflation expectations and improve broader market sentiment.
US midterm elections approach
American voters head to the polls Tuesday to determine control of Congress, making the elections an important political event for financial markets. A recent Reuters/Ipsos poll put Trump's approval rating at 31%, its lowest level in the survey. The balance of power in the House and Senate could influence the legislative agenda for the remainder of Trump's presidential term. Investors will monitor the outcome for potential implications for taxation, regulation, energy policy, and technology-sector spending. Results are expected to begin emerging Tuesday evening.
Manufacturing data and economic reports ahead
Monday's economic calendar includes the ISM Manufacturing Index and final S&P Global purchasing managers' index readings for October. Attention will then shift to Friday's nonfarm payrolls report, which is expected to provide fresh insight into the health of the US labor market. Investors will assess whether employment growth remains resilient or is showing signs of further weakness. AMD's earnings later in the week will also be important for semiconductor sentiment after Intel's debacle.
This article is for informational purposes only and does not constitute financial advice.
