S&P 500, Nasdaq futures rise as AI stocks rebound ahead of key earnings

The S&P 500 and Nasdaq futures experienced a rise on Monday, driven by a rebound in AI-related shares following last week's significant sell-off. This upward trend was further supported by a decrease in oil prices and lower Treasury yields. The S&P 500 and the Nasdaq Composite both posted their most substantial weekly decline since late June due to concerns that increasing interest rates may impede investments in AI infrastructure, particularly impacting data center operators.

Notably, AI-linked stocks, including CoreWeave, which had plummeted over 25% last week, saw a 3.4% increase in premarket trading on Monday. Chip-related companies, such as Broadcom and Micron, also experienced gains, with their shares climbing 2.9% and 3.3%, respectively. However, megacap stocks like Apple and Meta had a mixed performance; while Nvidia and Amazon rose by more than 1% each, Apple and Meta saw slight declines.

Analyst Ipek Ozkardeskaya emphasized the necessity for stronger monetization of AI investments, as another promise to spend billions on AI tools might not sit well with investors. Companies are set to report their earnings this week, with Meta expected to exceed market expectations on Wednesday, and Tesla and SpaceX scheduled to release their results on Wednesday and Tuesday, respectively.