Stock Futures Higher, Oil Lower as Investors Return to Risk
By Joe StonorStock futures rose and Treasury yields eased, as falling oil prices encouraged investors to make a cautious return to risk after last week's tech selloff.Nasdaq futures rose 0.7%, while futures for the S&P 500 and Dow Jones Industrial average were up 0.4% and 0.2%, respectively. Artificial-intelligence stocks rallied after heavy selling last week, ending in the Nasdaq's worst one-day decline since June on Friday. Asian stock indexes largely rose as some money returned to AI, with the South Korean Kospi closing 2.2% higher though Japan's Nikkei 225 slipped 0.3%. European indexes were mostly higher.Investors are grappling with mounting doubts around AI, Deutsche Bank's Jim Reid wrote in a note. AI stocks will be back in focus when tech giant Apple reports earnings after the closing bell Monday.In the bond market, Treasury yields slipped at the longer end of the curve. Ten-year yields fell back to hover around 4.910%, while 30-year yields traded below 5.300%. Two-year yields crept higher, trading around 4.600% as investors continued to expect a Federal Reserve rate hike in December.Oil prices fell, with benchmark Brent crude for January delivery dropping 3.8% to trade just above $109 a barrel, while the West Texas Intermediate contract for December fell below $100 a barrel. Prices rose last week as fears grew that the U.S. could resume strikes against Iran following the midterm elections. However, greater hopes for diplomatic advances Monday saw oil return some of the week's gains.Gold futures ticked higher but continued to trade below $4,000 a troy ounce. The dollar weakened against a basket of global currencies, and bitcoin edged higher to $78,200 but remained below its level before last week's hack of Binance.The week ahead will be shaped by U.S. midterm elections. Investors will watch final-stage polls closely, with a Democratic sweep of the House and Senate viewed as negative for the AI trade amid voter concern around data centers. As well as Apple, Palantir and Vertex Pharmaceuticals are among companies reporting after the closing bell.Write to Joe Stonor at [email protected]