Nasdaq 100 futures rose 1.08% as AI-linked stocks recovered from last week's selloff. Markets are reacting to falling US Treasury yields and lower oil prices, with investors turning focus to upcoming earnings from Meta, Tesla, and Netflix.
Nasdaq 100 futures climbed 1.08% to reach 29,708.2, reflecting a shift in investor sentiment as tech-heavy portfolios look to recover from last week's sharp decline. The rally is largely driven by AI-linked stocks, which had faced pressure due to concerns that higher interest rates could force companies to reduce spending on data centers and AI infrastructure.
Improving macro conditions are providing support to the current move. The 10-year US Treasury yield eased to 5.085%, while Brent crude prices dipped to $107 per barrel. This decline in oil prices followed the US administration's decision to waive specific sanctions on Russia, a move that is helping to lower global inflationary pressures.
Investors are now closely watching a packed earnings calendar. Upcoming reports from Meta Platforms, Tesla, Netflix, and SpaceX will be critical in determining whether the tech sector can justify its current valuation levels. Other companies, including General Motors and GE Aerospace, are also set to report, providing a broader look at corporate health and capital spending trends.
While US futures suggest a positive start, global markets remain uneven. Domestic Indian markets faced a different trend, with the Sensex falling 876 points to close at 73,852.90. This decline was largely led by selling pressure in private banking stocks, including HDFC Bank and Axis Bank, highlighting a contrast between the tech-led recovery in the US and the banking-sector volatility in India.
For investors, the immediate focus remains on the ongoing earnings season. Market participants will monitor whether these corporate results demonstrate sustained growth or if the previous concerns about capital expenditure capacity in the tech sector remain valid.