US stock futures climbed on Monday, October 19, as investors returned to artificial intelligence stocks following last week's sharp sell-off. Nasdaq 100 futures gained more than 1%, while S&P 500 futures advanced as semiconductor and technology shares recovered. However, European markets declined as protests in France and concerns over economic growth weighed on stocks.
US Stock Market Futures Rise as Technology Shares Recover
Nasdaq 100 futures rose 1.05% in early trading, while S&P 500 futures gained 0.47%. Meanwhile, Dow Jones Industrial Average futures fell 0.14%, showing mixed performance across major U.S. stock market indexes.
The recovery followed a difficult week for Wall Street. The Nasdaq Composite dropped 4.5%, ending four consecutive weeks of gains. The S&P 500 also lost nearly 2%, recording its largest weekly decline since late June.
Investors had reduced their exposure to technology companies amid concerns about rising borrowing costs and the money needed to expand AI infrastructure. Monday's rebound came as oil prices and U.S. Treasury yields declined, reducing some of the pressure on technology shares.
Intel, Micron and CoreWeave Lead AI Stock Rebound
Semiconductor companies recorded gains during Monday's premarket session. Intel shares climbed 4.4% after JPMorgan upgraded the chipmaker from "underweight" to "neutral."
Micron Technology advanced 3.3%, while Broadcom gained 2.9%. Advanced Micro Devices also traded higher as investors returned to companies involved in semiconductor production and AI computing.
CoreWeave shares rose 3.4% after falling more than 25% during the previous week. The cloud computing company had faced selling pressure as investors raised questions about its debt and the costs of expanding data center operations.
However, gains among major technology companies remained uneven. Nvidia and Amazon advanced more than 1% each, while Apple and Meta Platforms recorded small declines in premarket trading.
Falling Oil Prices and Treasury Yields Support Wall Street
Oil prices declined on Monday after U.S. President Donald Trump's decision to waive some sanctions on Russia. Brent crude futures fell approximately 1.3% to USD 108.50 per barrel.
Despite the decline, energy prices remained elevated as tensions in the Middle East continued. Reports of another tanker striking a mine in the Strait of Hormuz added to concerns about shipping and energy supplies.
Meanwhile, the benchmark U.S. 10-year Treasury yield declined to approximately 5.08%. Lower yields can reduce financing costs and ease pressure on companies borrowing money to fund expansion.
Borrowing costs have become a key concern for AI infrastructure companies, particularly those financing large data centers and computing equipment through debt.
European Stock Markets Fall as French Protests Continue
European markets moved lower despite the recovery in U.S. technology futures. France's CAC 40 fell approximately 1.38%, while the pan-European Stoxx 600 declined 0.79%.
Germany's DAX and Britain's FTSE 100 also recorded losses as investors monitored political developments and economic conditions across the region.
French stocks faced additional pressure after nationwide protests over living costs and public services turned violent during the weekend. Shares of BNP Paribas, Societe Generale and Credit Agricole fell between 2.2% and 2.6%.
The unrest also pressured French government bonds ahead of the country's 2027 presidential election.
UBS Global Wealth Management strategist Kiran Ganesh said, “There is clearly political risk,” while warning that other economic factors could influence markets over a longer period.
Meta and Tesla Earnings Become the Next Market Focus
Investors are turning their attention to corporate earnings scheduled throughout the week. Meta Platforms and Tesla are expected to report results on Wednesday, October 21.
The reports will provide updated information about company revenue, profitability and spending plans. Investors are also examining whether AI-related income can keep pace with the costs of building new infrastructure.
Swissquote senior analyst Ipek Ozkardeskaya questioned whether additional spending commitments would satisfy investors, saying, “What investors really need is stronger monetization.”
Netflix, General Motors and GE Aerospace are also among the companies scheduled to release earnings this week.
For the U.S. stock market, Monday's futures gains followed losses driven partly by concerns over AI financing. Upcoming earnings will provide further information on corporate spending, revenue growth and borrowing costs.
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