AI stocks recover as futures rise, oil slips

Stock futures made a swift recovery after a tech-driven selling spree the previous day, as lower oil prices and increased optimism surrounding artificial intelligence lifted markets. Nasdaq futures jumped 0.8%, partially recouping losses from a significant drop in AI-related stocks the day prior following a Financial Times report which claimed OpenAI's annualized revenue would be $20 billion less than expected.

However, the market seemed to ignore these concerns, causing chip manufacturers and hyperscalers to soar during premarket trading. Additional major indices also climbed, with Dow Jones futures advancing 0.1% and S&P 500 futures climbing 0.4%. European stocks also began the day on the rise, with the global Stoxx 600 index gaining 0.75% due to a software surge.

Conversely, Asian shares were mixed, with the AI-focused Korean Kospi and the Japanese Nikkei 225 experiencing declines. The telecommunications sector faced challenges in both the U.S. and Europe, with T-Mobile shares plummeting over 6% premarket and European telecom stocks falling after Elon Musk's SpaceX intensified its efforts to establish a mobile network.

Bond yields increased marginally in early European trading, yet remained far below the multi-decade peaks reached earlier this month. Ten-year Treasury yields rose 1.1 basis points to 5.244%, while 30-year yields added 0.9 basis point to 5.615%. Oil prices retreated from Thursday's peaks following President Trump's announcement that the U.S. wouldn't strike Iran before the midterm elections, citing "productive" conversations with Tehran.

Front-month Brent crude futures declined 1% to $103.20 a barrel, while WTI crude fell 0.9% to $90.64 a barrel. Nonetheless, supply risks persist due to ongoing Houthi attacks on Saudi Arabia and Hurricane Isaias threatening oil production in the Gulf of Mexico. The U.S. dollar slipped from recent highs against a basket of global currencies, boosting gold prices and bitcoin.

The cryptocurrency climbed nearly 1% to trade near $82,500, while New York gold futures rebounded above $4,200 a troy ounce. Investors will be keenly watching for U.S. consumer sentiment data as markets open for business.