US equity futures rose Monday, led by tech shares, as falling oil prices eased pressure after a bruising week for AI stocks. Nasdaq 100 futures gained 0.6% and S&P 500 futures rose 0.3% by 7:50 a.m. in New York. Crude dropped on reports Donald Trump wants more diplomacy time with Iran.
The rebound follows a punishing week where the Nasdaq 100 fell about 8% from its October peak, nearing a technical correction after Alphabet Inc. earnings intensified concerns over AI investment costs. Jefferies' Daniel Kirsche noted the selloff raises questions about the broader outlook, though a late-Q4 recovery led by improving breadth is still expected.
Historical data supports post-midterm rallies: the S&P 500 has tended to rise after midterms regardless of prior performance, with semiconductors leading. JPMorgan's Andrew Tyler said Trump won't sign bills limiting AI expansion, creating a potential buy-the-dip opportunity. Morgan Stanley's Mike Wilson sees the June correction in its "final innings."
Apple Inc. reports earnings Monday, with options implying a ~4% move versus a 2.5% average. The iPhone maker has defied the tech rout and reclaimed the world's most valuable company title. In corporate news, a Blackstone Inc.-led group agreed to acquire a stake in LNG Canada from a Mitsubishi subsidiary for $3.1 billion, while Anthropic PBC seeks to raise up to $3.5 billion in a US IPO.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing