US stock futures pointed to a steadier open on Monday as chipmakers attempted to recover from Friday’s sharp selloff, though rising oil prices and renewed Middle East strikes kept risk appetite fragile.
S&P 500 and Nasdaq 100 futures rose as Nvidia, Broadcom and Micron gained in premarket trading, helping ease some of the pressure from last week’s rout in AI-linked shares.
The rebound looked cautious as investors are still weighing whether stretched valuations, stronger US jobs data and a jump in crude prices could force the Federal Reserve into a tougher policy stance.
5 things to know before Wall Street opens
1. Chip stocks try to steady after a $1 trillion wipeout
Semiconductor shares regained some ground before the bell after Friday’s selloff erased about $1 trillion in market value from US-listed chipmakers.
Nvidia, Broadcom and Micron Technology rose between 1.5% and 3.9% in early trading, offering some relief to a sector that has powered much of this year’s equity rally.
The rebound followed a bruising session triggered by weaker-than-hoped results from Broadcom and concerns that expectations around artificial intelligence had become too stretched.
2. Futures rise, but Dow lags
Futures tied to the S&P 500 and Nasdaq 100 rose 0.40% and 0.75%, respectively, while Dow futures slipped 18 points.
The early move suggested investors were prepared to buy part of Friday’s decline, but not aggressively.
The broader backdrop remains unsettled, with rate expectations, oil prices and geopolitical risks all moving against the easy-risk mood that had supported stocks earlier in the year.
3. Strong jobs data revives rate-hike worries
Friday’s stronger-than-expected May payrolls report added another layer of pressure to markets by reviving expectations that the Fed may not be finished tightening.
Interest-rate futures imply a 42% chance that policymakers will raise rates by 25 basis points in December, according to CME Group’s FedWatch tool.
That shift matters for equities because higher rates reduce the appeal of long-duration growth stocks, including many AI and semiconductor names.
4. Oil surge hits airline shares
Crude prices rose more than 4% to above $95 a barrel after renewed Israeli strikes on Iran and fresh attacks on Lebanon dimmed hopes of a quick easing in the conflict.
The move added to inflation concerns and raised fears of a more expensive fuel environment for transport companies.
Airline shares came under pressure in premarket trading, with Southwest Airlines and Delta Air Lines each down about 2.4%.
5. Marvell and Eli Lilly stand out
Marvell Technology jumped 6.6% before the open after the chipmaker was set to join the S&P 500 before trading starts on June 22.
Inclusion in the benchmark index can trigger buying from funds that track the gauge, adding a technical boost to the stock.
Eli Lilly rose 4.1% after trial data showed its next-generation obesity drug, retatrutide, reduced sleep apnea severity while also supporting weight loss and helping knee pain.
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