US equity futures rebounded Monday, led by a 1.5% surge in Nasdaq 100 contracts, as chip stocks steadied after a $1 trillion rout.
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Nasdaq 100 futures climb 1.5% as chip stocks rebound from rout
Nasdaq 100 futures climbed 1.5% Monday as chip stocks steadied after a $1 trillion rout, while Middle East fighting pushed crude above $95 a barrel.
"We do not expect investors to lose confidence in the AI outlook," said Mark Haefele, chief investment officer at UBS Global Wealth Management. "Although tech stocks have come under pressure in recent days because of concerns about whether expectations can be met, business fundamentals remain strong."
Nvidia, Broadcom and Micron Technology each rose between 1.5% and 3.9% in premarket trading, recouping some of Friday's losses that dragged the Philadelphia SE Semiconductor Index to a two-week low. The rebound was broad-based: the Russell 2000 futures added 1.5%, while S&P 500 e-minis gained 25.75 points, or 0.8%, and Dow Jones futures edged up 0.3%. Friday's selloff wiped out more than $1 trillion in market value from US-listed chipmakers after Broadcom's underwhelming results and expectations of tighter monetary policy raised concerns that the sector had grown too fast. Most of the Magnificent Seven tech giants traded higher premarket after all finished lower Friday, with Nvidia and Tesla up more than 1% each after sinking more than 6% last session.
The rally faces headwinds from two directions. Friday's stronger-than-expected May jobs report prompted traders to price in a 42% chance of a quarter-point Federal Reserve rate hike by December, according to CME Group's FedWatch tool. Goldman Sachs said it now expects the Fed to hold rates steady through the year and delay cuts until 2027. Meanwhile, renewed Israeli strikes on Iran and fresh attacks on Lebanon sent West Texas Intermediate crude surging more than 4% to above $95 a barrel, raising fuel cost concerns for airlines including Southwest, United and Delta, which fell more than 1% each. Energy stocks rose in sympathy with crude, while airline and cruise operator shares declined.
The 10-year Treasury yield hovered around 4.57%, up from 4.52% at Friday's close, as the jobs data reinforced expectations that the Fed will keep policy tight. The dollar index ticked higher to 100.17, while gold futures declined 1% to $4,320 an ounce. Bitcoin rebounded above $63,400 after falling below $60,000 for the first time since October 2024 on Friday, with crypto-related stocks including Strategy and Coinbase Global rising up to 3.5%.
Wednesday's consumer price index report for May will offer fresh insight into how rising energy costs from the Iran conflict are feeding through to inflation, a key input for the Fed's next move. Citigroup raised its 2026-end S&P 500 target to 8,000, citing corporate earnings resilience and AI-driven growth.
In single-stock moves, Marvell Technology jumped 7.2% premarket after the chipmaker was selected to join the benchmark S&P 500 before trading opens on June 22. Eli Lilly gained 4.1% after trial results showed its next-generation obesity drug retatrutide reduced sleep apnea severity in addition to boosting weight loss.
This article is for informational purposes only and does not constitute investment advice.
