A drop in oil prices helped send stock futures soaring early Monday, as investors continued to monitor tech companies closely following last week’s wild ride. Important inflation data and earnings reports from big AI companies were also anticipated by investors this week. A 1.1% increase, or 538 points, occurred in Dow Jones Industrial Average futures. A 0.7% increase was seen in S&P 500 futures while a 0.4% increase was seen in Nasdaq 100 futures. A barrel of West Texas Intermediate futures sold for $88.17 saw a decline of over 3%. Brent crude, the global benchmark, fell 3.4% to $94.94.
After Thursday’s severe AI-driven sell-off, Friday’s market saw some recovery as chip stocks rose on resumed purchasing. In contrast to the broad-market S&P 500’s 0.31% gain, the tech-heavy Nasdaq Composite jumped 1.09%. On the other hand, the blue-chip Dow fell by 237.33 points, or 0.46 percent. After a series of better-than-expected jobs figures, overall investor mood stayed cautious. Some worry that stricter controls on data center building, energy use, and development costs would impede the AI infrastructure growth, which is a concern that has persisted since the Democrats’ good midterm victory. A bombshell disclosure about an inquiry into the link between Nvidia co-founder and CEO Jensen Huang and a businesswoman whom U.S. intelligence agencies have accused of being a Chinese spy will also be front and center in the tech sector on Sunday.
In the United States, Nvidia’s stock price fell 5% in the premarket. The Nasdaq and Nasdaq-100 are oversold due to traders heavily reducing their risk exposure, according to Liz Ann Sonders. Vanda Research reports that Thursday was the busiest shopping day since the COVID-19 epidemic. The selloff has not been capitalised on by retail traders, according to Sonders. “Retail has not proven to be the dip buyers that they have been in the past,” she told. “You saw a really heavy amount of net selling … we may not fully be washed out yet, but we’ll have to see whether that retail trader at some point decides to step back in.” According to Sonders, corporations should shift their attention to revising their capital expenditure plans and their projections for future profit margins in the near term.
In order to gauge the future of technology and determine if the current selloff has legs, investors are awaiting important AI-related earnings reports this week from companies like CoreWeave, Cisco, and Applied Materials. They will also be keeping an eye on Tuesday’s consumer price index and Friday’s producer price index releases for indications of the Federal Reserve’s next move. At 10 a.m. on Monday, traders will have access to wholesale inventory data for the month of September. On the horizon are quarterly earnings reports from Take-Two Interactive Software, Occidental Petroleum, KKR, Constellation Energy, and Skydance.
