Stock Futures Edge Up as Tech Rebound Faces Its First Test

Stock Futures Edge Up as Tech Rebound Faces Its First Test

Overnight futures rise modestly after Monday's recovery

U.S. stock futures rose slightly on Monday night, building on a mostly higher regular session as investors stepped back into technology shares after a bruising sell-off. Dow Jones Industrial Average futures added about 56 points, or 0.1%, while S&P 500 futures and Nasdaq-100 futures each rose roughly 0.1% to 0.2%.

Nasdaq jumps 1.1% as chip stocks snap losing streak

In Monday's regular session, the S&P 500 climbed 0.41% to 7,690.73, while the Nasdaq Composite advanced 1.11%, or 290.85 points, to 26,430.89. The Dow slipped 0.07%, or 36.38 points, to 51,966.03. The rally extended an earlier rebound: the Nasdaq 100 gained 1.2% on Monday and the Philadelphia Semiconductor Index jumped 1.6%, ending an eight-day losing streak.

Nvidia, Tesla and Intel lead the advance

Megacap tech paced the gains. Nvidia rose about 1.4%, Alphabet added about 1%, and Tesla jumped about 3.8%. Intel climbed sharply after JPMorgan upgraded the stock to "neutral" from "underweight," citing rising agentic AI workloads and tight advanced-chip supply. AMD gained 3.6% and Broadcom advanced 2.4%, while CoreWeave rose about 1.3% in premarket trading before giving up most of its early gain to close slightly lower at $61.12, just above its July closing low of $60.82, after losing more than 25% the prior week.

Rebound follows Nasdaq's worst week since June

The bounce came after a punishing week in which the Nasdaq dropped 4.5%, ending a four-week winning streak and marking its worst week since June — and for the Nasdaq 100, the worst since the tariff turmoil of April 2025. The S&P 500 fell nearly 2% on the week. On Friday alone, the Nasdaq shed 572.99 points to 26,140.03 and the S&P 500 lost 84.62 points to 7,659.44, as investors shifted focus from what AI can do to how its infrastructure will be financed.

Earnings week to decide whether AI spending pays

The next test is earnings. Meta Platforms and Tesla report Wednesday after the close, with Netflix and General Motors due Tuesday and IBM and Texas Instruments also on the calendar. Goldman Sachs expects five AI hyperscalers, Meta among them, to lift combined capital spending to about $1.2 trillion next year. As one BNY Wealth strategist put it, the key question is whether hyperscaler profitability can grow faster than the pace of their capital spending.

Yields and oil cool as risk appetite steadies

Supporting sentiment, the benchmark 10-year yield fell to 5.085%, while front-month Brent crude dropped 2.4% to around $107.30 a barrel after closing near a five-month high of about $110, following President Trump's move to block sanctions on Russia. Still, strategists caution that investors need stronger monetization — proof that revenues generated with AI can catch up with spending on AI tools — before calling the rebound durable.