US Stock Futures Rise as Oil Drop Buoys Sentiment: Markets Wrap
(Bloomberg) — US equity futures advanced, signaling some respite after a bruising selloff in the artificial intelligence trade, with falling oil prices helping stocks to start the month on a positive note.
Contracts for the Nasdaq 100 rose 0.8%, while those for the S&P 500 climbed 0.4%. An exchange-traded fund tracking chipmakers signaled a modest rebound for the sector. Apple Inc., which reclaimed the title of the world’s most valuable company, edged lower in early trading ahead of its results.
A report that President Donald Trump wants to give diplomacy with Iran more time helped ease pressure on oil prices, with Brent crude falling nearly 4% to about $109 a barrel. Longer-dated Treasuries advanced ahead of a week that will also be shaped by the US midterms and a slate of employment data. The dollar slipped 0.1%. Gold hovered around $3,900 an ounce.
“The rebound is relatively modest compared with Friday’s selloff, so I wouldn’t yet interpret it as a convincing ‘buy-the-dip’ signal,” said Simon Wiersma, chief investment strategist at ING. “There are still enough uncertainties around AI investment, interest rates and geopolitics to keep investors cautious.”
Friday’s selloff showed investors’ diminishing tolerance for tech companies whose core businesses are slowing while their AI outlays continue to grow. The biggest spenders have been borrowing heavily to fund the buildout, with Alphabet Inc. kicking off its second sale of euro bonds this year on Monday after raising €9 billion ($10 billion) in May.
Morgan Stanley equity strategist Mike Wilson sees a few “clearing events” ahead for the stock market that could trigger another leg lower, creating an opportunity for investors to pile back in.
While a number of factors could bring the S&P 500 down about 9% from its last record to 7,100 — primarily the midterms, stress over AI and liquidity constraints — Wilson is bullish on the longer-term trajectory. He expects the benchmark to push toward 8,000 once those events are out of the way and a correction that has been happening under the surface has run its course.
“Recent weeks are not, in our view, the ‘start of the end’ of the AI trade,” noted Barclays Plc strategists including Ajay Rajadhyaksha. “This strikes us as more of a garden variety correction, of the sort we have seen twice before in 2026. In both prior corrections, the power of earnings ultimately blew past market concerns.”
Europe’s Stoxx 600 drifted lower as weakness in energy-related stocks countered a rise in consumer-linked shares. Alstom SA plunged 25% after cutting its full-year guidance and announcing a sweeping overhaul.
Chinese stocks rallied following a report that financial regulators will meet with banks and securities firms to discuss measures to support the capital market. Most members of the MSCI Asia Pacific Index posted gains even as the index dropped 0.2%. A slump in Japanese memory maker Kioxia Holdings Corp. after a cautious outlook showed that concerns around AI persist.
“A mixed bag of tech earnings out of Japan seems to keep skepticism high,” said Stephan Kemper at BNP Paribas Wealth Management Germany. “When it comes to AI and the risk of a slowdown, investors still seem to take a ‘glass half-empty’ approach, heavily punishing everything that falls short of absolutely perfect.”
Corporate Highlights:
Marvell Technology Inc. has reached a deal to buy data center optics maker Lumentum Holdings Inc. at an enterprise value $115 billion, one of the the biggest tech deals ever, in a race to capitalize on the artificial intelligence boom. Alphabet Inc. is offering euro bonds for the second time this year, in a test of investor demand after stress in technology debt pushed borrowing spreads wider across the sector in recent weeks. Alstom SA shares plunged after the French train maker cut its full-year guidance and announced an overhaul as delays in key German projects triggered penalties and hurt margins. Anthropic PBC aims to raise up to $3.5 billion from Japanese investors in its initial public offering in the US, bringing the landmark share sale by the artificial intelligence startup to a market starved of first-time offerings.
Some of the main moves in markets:
Stocks
S&P 500 futures rose 0.4% as of 7:15 a.m. New York time Nasdaq 100 futures rose 0.8% Futures on the Dow Jones Industrial Average rose 0.5% The Stoxx Europe 600 fell 0.1% The MSCI World Index was little changed Currencies
The Bloomberg Dollar Spot Index fell 0.1% The euro rose 0.4% to $1.1208 The British pound rose 0.1% to $1.3411 The Japanese yen fell 0.2% to 157.92 per dollar Cryptocurrencies
Bitcoin rose 0.2% to $77,950.12 Ether rose 1.3% to $2,291.09 Bonds
The yield on 10-year Treasuries was little changed at 4.92% Germany’s 10-year yield was little changed at 3.32% Britain’s 10-year yield declined four basis points to 5.24% Commodities
West Texas Intermediate crude fell 4.1% to $99.90 a barrel Spot gold rose 0.8% to $3,904.16 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Nicholas Reynolds and Jan-Patrick Barnert.
©2026 Bloomberg L.P.
See more Swissinfo articles in your Google results. Learn more
