US stock futures rise as oil retreats from $90 ahead of Big Tech earnings
Brent crude eases following diplomatic signals between the US and Iran, while Wall Street looks for AI monetisation proof amid sector rotations.
US stock futures posted modest gains on Monday morning as investors positioned themselves ahead of a critical week of quarterly earnings from major technology firms. The Dow Jones Industrial Average futures edged up 0.2 per cent, while S&P 500 futures added 0.3 per cent. The tech-heavy Nasdaq-100 futures rose nearly 0.7 per cent, reversing a volatile week that saw semiconductor stocks post losses.
Market participants are closely monitoring upcoming reports from Alphabet, Intel, IBM, and Tesla to assess whether companies are successfully monetising their substantial artificial intelligence investments. This focus comes after recent sector rotations have shifted capital away from high-valuation tech names, with the Philadelphia Semiconductor Index falling 20 per cent from its June record high.
In the energy markets, Brent crude futures reversed earlier gains after touching $90 a barrel, driven by renewed hostilities between the US and Iran over the weekend. The US had engaged in its ninth consecutive day of attacks against Iran, prompting Tehran to retaliate by bombing US allies in the region, primarily Kuwait.
Despite the escalation, diplomatic exchanges via mediators suggested scope for fresh negotiations, causing oil prices to ease. Iran stated that these diplomatic channels would continue despite ongoing tit-for-tat attacks, although the two sides remain far apart on a ceasefire agreement as the death toll from the conflict rises.
Brent crude futures remain well below their peaks from April and May, indicating that energy markets may be beginning to look beyond the Strait of Hormuz for alternative shipping routes. This shift suggests that while geopolitical tensions remain high, investors are starting to price in longer-term structural changes to global energy transit.
