Wall St futures rise as AI stocks gain, oil prices slide

Wall Street saw an upward trend on Monday, driven by an increase in AI stocks, as oil prices plummeted by 2%. Treasury yields decreased due to indications of potential resolution in the Middle Eastern conflict. Concerns about AI sector decline from top company executives appeared to fade as investors acknowledged ongoing growth in AI development spending.

Intel stocks increased by 5.4%, Marvell by 2.6%, Meta by 2.4%, and Dell by 2.7%. Accenture gained 6% after teaming up with Anthropic to invest $2 billion in AI evaluation. Despite ongoing tensions between Iran and the US, President Donald Trump expressed willingness to meet Iranian President Masoud Pezeshkian, who was set to attend the UN General Assembly in New York.

Falling crude prices reduced pressure on equities, with the 10-year US bond yield falling below the 5% threshold. Airlines like Delta and American saw a 1% gain each as energy prices impacted them. The Federal Reserve's decision to raise interest rates for the first time in three years, prompted by inflation surge, has led to a 53% chance of another rate hike next month according to CME Group’s FedWatch Tool.

Upcoming policy discussions from several economists, including Chicago Fed President Austan Goolsbee on Monday, are expected to provide more clarity on the rate outlook. At 05:09 a.m. ET, Dow E-minis were up 311 points (0.6%), S&P 500 E-minis rose 48.75 points (0.63%), and Nasdaq 100 E-minis climbed 327.25 points (1.09%). Positive developments included diplomatic progress between the US and Denmark over Greenland's status, which is likely to maintain stable trade relations.

Shares of companies with interest in Greenland, such as Critical Metals (+30%), Greenland Mines (+70%), and Greenland Energy (+200%), also surged. Diplomatic talks were anticipated to be a focus on Thursday during a China-US summit, potentially covering the extension of the trade truce, the Iran war, and AI advancement regulation.

US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng concluded their meeting on Sunday, with Bessent proposing a new AI safety notification mechanism. Bitcoin experienced a 3.5% increase, reaching a seven-month high, boosting Coinbase (+4.6%) and Strategy (+6.8%). Warner Bros rose 7.6% following a report that Paramount and California’s attorney general were discussing concessions in settlement negotiations that could potentially finalize the merger between the two companies.