US stock futures rose slightly Monday as investors awaited big tech earnings and the Federal Reserve's decision Wednesday. S&P 500 contracts gained 0.3%, while Nasdaq 100 futures rose 0.5%. Brent crude fell 1.3% to $115 a barrel. CIBC's Christopher Harvey noted that while earnings typically outweigh macro factors, Wednesday's Fed press conference complicates the outlook, with GOOGL and MSFT expected to take center stage by 4:30 p.m.
Focus turned to Brazil's election, where Luiz Inácio Lula da Silva's victory caused US-listed Brazilian companies to slump. The iShares MSCI Brazil ETF tumbled 26% in premarket trading. Last week saw volatility after Meta Platforms Inc. raised capex guidance above operating cash flow, triggering a 2.9% Nasdaq drop and a 6.7% decline in the Philadelphia Semiconductor Index. Meta's five-year credit default swaps spiked to a record high. Elon Musk warned on X that debt markets have shut off access to non-AI companies.
This week features Alphabet Inc. and Microsoft Corp. reporting Wednesday, followed by Amazon.com Inc. and Intel Corp. Thursday. The Fed is anticipated to leave rates unchanged. HSBC's Max Kettner turned cautious on stocks due to AI regulation fears, cutting his maximum overweight to neutral. In single stock moves, Tesla gained 2.3% after Barclays upgraded citing Space X M&A opportunity. Meta sank 5% premarket before paring losses after announcing plans to raise up to $95 billion for AI spending.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing