US equity futures climbed on Monday, recovering last week’s losses as a pullback in energy prices eased concerns about a weakening macroeconomic backdrop. Futures on the S&P 500 and Dow Jones Industrial Average were up about 1%, while Nasdaq 100 contracts advanced nearly 1.5%.
The US halted its strikes against Iran over the weekend, and benchmark fuel prices retreated on optimism that energy exports from the Middle East may resume. The resulting decline in bond yields loosened financial conditions and all but erased expectations of a Federal Reserve rate hike this week, with markets now largely shifting their tightening bets to September.
Mega-cap tech names Amazon, Meta, Microsoft, and Apple traded higher in premarket activity ahead of earnings reports due in the coming days. Nvidia lagged the broader move with a gain of just 0.5%, after news of a $500 billion AI memory chip supply agreement with SK Hynix and a commitment of $250 billion to OpenAI for leased computing capacity from a planned data center project. The scale and structure of these arrangements revived worries that highly interconnected AI-computing deals could amplify stress and contagion risks if spending momentum slows.
