Stock Futures Rise as Investors Make Cautious Return to Risk

By Joe Stonor

Nasdaq futures rebounded as investors tentatively turned back to artificial-intelligence stocks after heavy selling last week, while oil prices pulled back from Friday highs.

All three major U.S. stock indexes were on track for positive sessions Monday. Futures for the S&P 500 and Dow Jones Industrial Average rose 0.7% and 0.4%, respectively. Nasdaq futures jumped 1.2%, retracing some of last week's losses though the index remains down for the month. Chip makers gained premarket with bellwether Nvidia rising more than 2%. Earnings this week from AI-linked companies including Meta, IBM and Texas Instruments will help shape AI sentiment.

"What investors really need is stronger monetization--proof that the revenues generated with AI can catch up with the spending on AI tools," said Swissquote's Ipek Ozkardeskaya.

In Asia, stock indexes were mixed amid cautious tech recovery. South Korea's semiconductor-heavy Kospi rose 1.8%, though Japan's Nikkei Stock Average slipped 0.7%. European stocks pulled back after notching strong gains last week, with weekend riots across France weighing on the CAC 40 in particular.

Oil prices fell after President Trump intervened to block sanctions that were set to be imposed on Russia. Front-month Brent crude contracts dropped 2.4% to trade around $107.30 a barrel after closing at a five-month high of close to $110 Friday.

Falling oil prices eased pressure on Treasurys, with yields falling across the curve. The faltering AI trade has also supported government bonds, as investors wager that stock market weakness will limit the severity of Federal Reserve tightening. Ten-year yields declined 2.5 basis points to 5.075%, while 30-year yields fell by a similar amount to trade around 5.410%. Two-year yields fell to trade around 4.730%.

In Europe, yields on French government bonds rose sharply following the weekend's demonstrations, while yields on German bonds eased.

The dollar rose as the selloff in AI stocks eased. ING analysts said the selloff had weighed on the outlook for Fed rate hikes and, in turn, the greenback. The cautious return to risk helped bitcoin--up 2% to $82,675--while New York gold continuous contracts hovered around $4,200 a troy ounce.

For the day ahead, investors will look to U.S. housing market data for October at the start of what is a quiet week for macro data releases.

Write to Joe Stonor at josephmichael.stonor@wsj.com

(END) Dow Jones Newswires

October 19, 2026 04:41 ET (08:41 GMT)