Nasdaq Rebounds at the Open as AI Stocks Recover and Oil Falls on Eased Russia Sanctions
U.S. stock futures pointed higher Monday and the Nasdaq opened more than 1% up after its worst week since June, while oil prices fell on expectations of more Russian supply as investors braced for earnings from Meta, Tesla and Netflix.
U.S. stocks were set for a higher open on Monday, with Nasdaq 100 futures up 1.03%, S&P 500 futures up 0.46% and Dow futures up 0.04% as of 5:45 a.m. EDT, as investors weighed falling oil prices and steadying Treasury yields, TipRanks reported. The Nasdaq opened 1.13% higher and the S&P 500 gained 0.58%, while the Dow slipped 92 points, according to Invezz.
The rebound came after a rough week for Wall Street. The S&P 500 fell about 2% for the week and the Nasdaq lost more than 4%, its worst weekly showing since June, while the Dow gained 0.7%, TipRanks reported. Investors have grown wary of how much debt technology companies are taking on to fund AI expansion, and whether that spending will pay off.
Oil drops on eased Russia sanctions
Oil prices fell on Monday after the U.S. eased sanctions on Russia, raising expectations of increased Russian oil supplies, according to TipRanks. Brent crude futures were down 1.47% at $108.24 a barrel, while WTI crude futures fell 0.67% to $100.73. The 10-year Treasury yield sat near 5.07%.
The supply picture stayed mixed. Ukrainian attacks on Russian oil facilities and attacks on tankers in the Persian Gulf continued to cloud the outlook, TipRanks noted, while a Reuters report on October 18 said Iran’s proposal to reopen the Strait of Hormuz remains on the table, subject to the U.S. meeting its conditions.
AI spending fears drove last week’s selloff
Friday’s losses were concentrated in technology. CoreWeave shares fell nearly 12% on Friday, bringing weekly losses to 25%, as investors weighed the company’s debt burden and the risks tied to its AI-related financing, TipRanks reported.
Asia-Pacific markets closed mixed on Monday. In Japan, the Nikkei 225 fell 0.62% while the Topix added 0.04%; China’s Shanghai Composite gained 0.39% and the Shenzhen Component rose 0.71%, while Hong Kong’s Hang Seng index was closed for a public holiday, according to TipRanks. China’s economy grew 4.5% in the third quarter from a year earlier, beating forecasts, and European stocks opened mostly lower.
Investors now turn to a busy week of corporate earnings, with quarterly results expected from Meta, Netflix, Tesla, IBM, Nebius, ExxonMobil and General Motors, TipRanks reported.
Reporting based on coverage by TipRanks and Invezz.
