U.S. stock futures climbed Monday as investors weighed whether technology shares can extend Friday’s rebound, with key inflation reports and earnings from major AI companies due this week, CNBC reported. S&P 500 futures gained 0.42%, Nasdaq 100 futures added 0.18%, and Dow Jones Industrial Average futures rose 375 points, or 0.73%.
Friday’s Rebound Follows AI Selloff
Friday’s session partially recovered from Thursday’s sharp AI-driven selloff as chip stocks regained ground. The Nasdaq Composite bounced 1.09% to 24,579.42 and the S&P 500 rose 0.31% to 7,376.86, while the Dow fell 237.33 points, or 0.46%, to close at 51,285.73.
Sentiment remained cautious after stronger-than-expected jobs data and Democrats’ strong midterm results, which raised concerns that tighter regulations on data center construction, energy use and development costs could slow the AI infrastructure boom.
Nvidia Board Probes CEO Relationship
Investors also digested news that Nvidia’s board is investigating co-founder and CEO Jensen Huang’s relationship with a businesswoman whom U.S. intelligence agencies say is a Chinese spy, CNBC reported. A proxy for Nvidia shares traded 2% lower over the previous 24 hours on Hyperliquid.
Retail Investors Step Back From Dip Buying
Liz Ann Sonders, chief investment strategist at the Schwab Center for Financial Research, said the Nasdaq and Nasdaq-100 are oversold after heavy de-risking. Thursday marked the biggest day of retail selling since the Covid pandemic, according to Vanda Research.
“Retail has not proven to be the dip buyers that they have been in the past,” Sonders told CNBC’s “Fast Money” on Friday. “You saw a really heavy amount of net selling … we may not fully be washed out yet, but we’ll have to see whether the retail trader at some point decides to step back in.”
Sonders said investors should next watch how companies adjust capital expenditure plans and profit margin expectations.
Inflation Data and AI Earnings Due This Week
Traders face a busy week. The consumer price index for October is due Tuesday and the producer price index Friday, offering clues on the Federal Reserve’s next move. September wholesale inventories data arrives Monday at 10 a.m. ET.
AI-related earnings from CoreWeave, Cisco and Applied Materials are also scheduled, alongside quarterly results from Take-Two Interactive Software, Occidental Petroleum, KKR, Constellation Energy and Skydance on Monday.
China Inflation Shows Producer Prices Surge
Asian investors also assessed China’s October inflation data, with the producer price index hitting 5.7%, its highest level in over four years, while consumer inflation came in slower than expected at 0.7%.
Frequently Asked Questions
Why are stock futures higher on Monday?
Futures rose as traders bet technology shares can continue recovering from Thursday’s AI-driven selloff. S&P 500 futures gained 0.42% and Dow futures added 375 points, according to CNBC.
What inflation data is coming this week?
The consumer price index for October is released Tuesday and the producer price index on Friday, which investors will watch for signals on the Federal Reserve’s next interest rate decision.
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