Technology and AI stocks rebounded on Monday, reversing a week of steep declines.
- The run-up comes ahead of a busy earnings week that is likely to set the tone for technology stocks and the broader market.
- Meta Platforms, Tesla, Lam Research, Texas Instruments, Bloom Energy, Valero Energy, and Netflix are among the top companies set to announce their quarterly prints this week.
- Meanwhile, climbing oil prices amid growing geopolitical uncertainties have put some downward pressure on markets.
U.S. stock futures climbed into positive territory late Monday as technology stocks rebounded after a sharp selloff last week.
Meanwhile, markets are keenly watching the third-quarter (Q3) earnings season unfold, with about 70 S&P 500 companies slated to report earnings this week.
As of 11:13 p.m. EDT, Dow futures were up about 0.25%, while the S&P 500 futures gained 0.21% and the Nasdaq-100 futures climbed 0.15%.
On Monday, the three benchmark indexes closed mixed. The Nasdaq Composite led the climb, adding more than 290 points to close 1.11% higher. The S&P 500 climbed 0.41% at close, while the Dow Jones Industrial Average fell 0.07%.
| Index | Move | Close |
| Dow Jones Industrial Average | -0.07% | 51,966.03 |
| S&P 500 | 0.41% | 7,690.73 |
| Nasdaq Composite | 1.11% | 26,430.89 |
Key US Market Drivers
Technology and AI stocks were top of mind for markets on Monday as the sector reversed last week’s steep selloff.
Chip stocks led the climb on Monday. The iShares Semiconductor ETF (SOXX) closed up nearly 2%, while the VanEck Semiconductor ETF (SMH) closed up 1.61%. Nvidia Corp. (NVDA), Micron Technology Inc. (MU) and Advanced Micro Devices Inc. (AMD) all ended the session in green.
The run comes ahead of vital Q3 results that will follow this week, which are likely to set the tone for the trajectory of technology shares.
“Tech earnings are key this week. Fundamentals are unchanged, but given fragile price action, we turn neutral [on] risk assets and stay neutral duration,” Ajay Rajadhyaksha, global chairman of research at Barclays, said in a note, according to CNBC.
Katie Stockton, founder of Fairlead Strategies, reportedly said in a note on Monday that the week will be crucial for the S&P 500 and Nasdaq, which need to hold support, while noting that a hold is possible amid widespread, short-term oversold conditions.
Meta Platforms (META) and Tesla (TSLA) are due to report Q3 results later this week, while multiple other semiconductor and technology companies, including Lam Research (LRCX) and Texas Instruments (TXN), will also post their results.
AI-related power companies Bloom Energy (BE) and Valero Energy (VLO), along with big entertainment companies including Netflix Inc. (NFLX), will also announce their quarterly results.
Meanwhile, rising oil prices amid growing geopolitical uncertainty have put downward pressure on markets. Brent crude futures expiring in December were trading at $109.88 a barrel, up about 0.3%, while WTI crude futures expiring in November traded at $103.64 per barrel.
Economist Peter Schiff said in a post on X, “Oil rose another 2.5% today. It’s almost $104. If you think gas prices are high now, just wait until after the midterms when Trump has to turn off the spigots from the Strategic Petroleum Reserve to keep it from running dry. Oil could hit $150, sending gas prices to record highs.”
Trending Stocks To Watch
Trump Media & Technology Group Corp. (DJT): Shares of the president’s media company were in focus late Monday after the stock slipped 8%, its worst single-day drop since February, as President Donald Trump’s approval rating hit a record low.
Amazon.com Inc. (AMZN): The company’s stock surged nearly 5% at close on Monday and continued to climb higher overnight after Morgan Stanley raised its price target and named it a ‘Top Pick.’
Cerebras Systems Inc. (CBRS): The AI hardware and supercomputing company was on the retail radar after shares slipped more than 5% on Monday, extending a broader selloff in the sector from last week.
CoreWeave Inc. (CRWV): Shares of the neocloud company fell more than 1% in overnight trading late Monday, putting it on track for a third week of declines amid a selloff in software names.
Other Market Trends
Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY), the Invesco QQQ Trust (QQQ) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) all climbed overnight.
Meanwhile, U.S. long-dated Treasury yields continued above 5%. At the time of writing, the 10-year U.S. Treasury yield was 5.138%, and the 30-year Treasury yield was 5.473%.
The iShares 20+ Year Treasury Bond ETF (TLT) was up 0.09% amid ‘bullish’ sentiment.
Asian markets opened lower on Tuesday, with South Korea’s KOSPI, Japan’s Nikkei 225, China’s SSE Composite and Australian stocks all trading lower at the time of writing.
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