Stock futures rose slightly on Monday, boosted by falling oil prices, following a losing week for the S&P 500 and NASDAQ Composite as cracks emerge around the artificial intelligence trade.
Futures for the Dow Jones Industrials sprang 184 points, or 0.6%, early Monday to 52,761.
Futures for the S&P 500 picked up four points, or 0.1%, to 7,663.75
Futures for the NASDAQ Composite was unchanged at 29,117.75.
Higher oil prices and a broadening selloff that hit many market sectors dragged the three major averages to losses on Friday. The selloff also dragged the S&P 500 and the NASDAQ to back-to-back weekly losses.
Neocloud stocks pressured the market last week as well, as investors worried companies may be borrowing too much cash to expand their AI capabilities. Neocloud names fell again on Monday after Elon Musk said more than 200 companies in the space face “guppy-level death.”
Shares of several neocloud companies were lower in premarket trade, with Nebius, CoreWeave and Iren all down more than 4%, after Elon Musk said that more than 200 companies in the sector could collapse.
Traders are awaiting the Federal Reserve’s decision on Wednesday. Fed funds futures trading suggests a 90% likelihood that policy makers will hold interest rates at the current target range of 3.75% to 4%.
Bank of America expects the Federal Reserve will raise rates by a quarter percentage point, noting it would be a “heavy lift” move.
In Japan, the Nikkei 225 dipped 0.8% Monday, while in Hong Kong, the Hang Seng moved ahead 0.4%.
Oil prices dropped $2.27 to $101.00 U.S. a barrel.
Gold prices brightened $16.80 to $4,024.7.60 U.S an ounce.
