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Wall Street Futures Rise as AI Stocks Rebound Ahead of Earnings

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US stock market futures rose on Monday, October 19, as artificial intelligence (AI) stocks recovered from last week’s sharp sell-off, while falling oil prices and Treasury yields supported investor sentiment ahead of major corporate earnings reports.

Futures linked to the Nasdaq 100 climbed 1.05%, while S&P 500 futures gained 0.47%. Dow Jones futures, however, slipped 0.14% in early trading.

The recovery followed a difficult week for US technology stocks, with the S&P 500 and Nasdaq Composite recording their steepest weekly declines since late June. Investors had grown concerned about the enormous cost of building AI infrastructure and whether companies could generate enough revenue to justify their investments.

AI infrastructure company CoreWeave gained 3.4% in premarket trading, while chipmakers Broadcom and Micron rose 2.9% and 3.3%, respectively. Nvidia and Amazon also advanced by more than 1%, although Apple and Meta recorded slight declines.

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Falling oil prices provided additional support. Brent crude futures dropped 1.3% to about $108.50 per barrel following a US decision to waive some sanctions on Russia. The benchmark 10-year US Treasury yield also eased to 5.0812%.

Investors are now watching a busy earnings calendar, with Meta Platforms, Tesla, SpaceX, Netflix, General Motors and GE Aerospace among the companies scheduled to report results this week.

Market participants will look for evidence that growing investment in AI is translating into stronger revenues and profits, rather than continued increases in spending.

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