The major U.S. index futures are currently pointing to a higher open on Monday, with stocks likely to see further upside following the rebound seen last Friday’s session.
Traders may continue to look to pick up stocks at relatively reduced levels following the historic sell-off seen last Thursday.
Early buying interest may also be generated in reaction to a steep drop by the price of crude oil, as U.S. crude oil futures plunge by more than 4 percent.
Crude oil futures are under pressure after President Donald Trump said he was “highly unlikely” to order more attacks on Iran as long as talks continue on Iran’s nuclear program and reopening the Strait of Hormuz. However, Secretary of State Marco Rubio later told reporters that talks with Iran have not been very productive because the Iranian demands are “outrageous and ridiculous and really not realistic.”
Tech stocks appear poised to extend last Friday’s recovery despite a sharp pullback by shares of Nvidia (NVDA), with the AI leader plunging by more than 5 percent in pre-market trading.
The slump by Nvidia comes after the chipmaker said it would open an investigation into reports that CEO Jensen Huang was the target of a foreign intelligence effort.
Traders may be reluctant to make more significant moves ahead of the release of key inflation data and earnings news in the coming days.
Following the sell-off seen during Thursday’s session, stocks moved back to the upside during trading on Friday. The tech-heavy Nasdaq showed a notable rebound, although the Dow saw continued weakness.
The major averages ended the day mixed. While the Dow fell 237.33 points or 0.5 percent to 51,285.73, the S&P 500 rose 23.13 points or 0.3 percent to 7,376.86 and the Nasdaq jumped 264.43 points or 1.1 percent to 24,579.42.
For the week, the Nasdaq plunged by 3.4 percent, the S&P 500 tumbled by 2.7 percent and the Dow slid by 0.9 percent.
The rebound on Wall Street largely reflected bargain hunting following the substantial pullback seen during Thursday’s session.
The tech-led sell-off dragged the Nasdaq down to its lowest closing level in over six months, while the S&P 500 plunged to a three-month closing low.
Semiconductor stocks have helped lead the way back to the upside, with the Philadelphia Semiconductor Index spiking by 4.2 percent following the 12.3 percent nosedive seen on Thursday.
Substantial strength was also visible among networking stock, as reflected by the 4.1 percent surge by the NYSE Arca Networking Index.
Outside of the tech sector, gold stocks moved sharply higher despite a decrease by the price of the precious metal, driving the NYSE Arca Gold Bugs Index up by 2.6 percent.
Airline and oil service stocks also saw considerable strength on the day, while housing stocks showed a notable move to the downside.
In U.S. economic news, a closely watched report released by the Labor Department showed employment in the U.S. increased by far more than anticipated in the month of October.
The Labor Department said non-farm payroll employment jumped by 165,000 jobs in October compared to economist estimates for the addition of 62,000 jobs.
The report also showed employment surged by an upwardly revised 186,000 jobs in August and climbed by an upwardly revised 60,000 jobs in September, reflecting a net upward revision of 84,000 jobs.
The report also said the unemployment rate edged down to 4.1 percent in October from 4.2 percent in September. The unemployment rate was expected to remain unchanged.
“The latest jobs data suggest labor market conditions are tightening, and with inflation well above target, that adds to the case for a December rate hike,” said Michael Pearce, Chief U.S. Economist at Oxford Economics. He added, “However, given most of the core inflation overshoot we expect is tied to spillovers from higher energy prices and AI-related pressures, continued falls in tech stocks and oil prices could eliminate the prospect of an additional hike in early 2027.”
Meanwhile, preliminary data released by the University of Michigan showed an unexpected improvement in U.S. consumer sentiment in the month of November.
The University of Michigan said its consumer sentiment index rose to 51.0 in November from 48.0 in October. Economists had expected the index to remain unchanged.
Commodity, Currency Markets
Crude oil futures are plunging $3.73 to $87.10 a barrel after rising $0.31 to $90.83 a barrel last Friday. Meanwhile, after sliding $38.60 to $4,074.90 an ounce in the previous session, gold futures are jumping $61 to $4,135.90 an ounce.
On the currency front, the U.S. dollar is trading at 157.90 yen versus the 158.45 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.1193 compared to last Friday’s $1.1143.
Asia
Asian stocks ended mixed on Monday, even as artificial intelligence stocks recovered some ground lost in last week’s sell-off on fears that tighter regulations on data center construction, energy use, and development costs could slow the AI infrastructure boom.
Investors digested mixed inflation data from China and braced for key U.S. inflation readings and earnings from major AI companies, including CoreWeave, Cisco and Applied Materials, due later in the week.
The U.S. consumer price inflation data is due on Tuesday, followed by the producer price inflation data on Friday.
Gold prices rose about 1 percent to trade above $4,100 an ounce in Asian trading as the U.S. dollar stabilized after climbing on stronger-than-expected employment data.
Brent crude futures traded almost 2 percent lower below $97 a barrel, extending last week’s losses after U.S. President Donald Trump said he was highly unlikely to order more attacks on Iran as long as talks continue on Iran’s nuclear program and reopening the Strait of Hormuz.
However, he left the door open for additional strikes, claiming three U.S. aircraft carriers were positioned in the region and that the U.S. had identified Iranian bridges and power plants as potential targets.
Ahead of a G7 meeting in France, U.S. Secretary of State Marco Rubio said Iran talks have made no progress, describing Tehran’s demands so far as unacceptable and warning that the U.S. could respond to threats against its forces.
Yemen’s Houthi rebels on Saturday claimed responsibility for six missile and drone attacks on Saudi targets, including Aramco facilities, Riyadh airport, and troops on both sides.
China’s Shanghai Composite Index rose 0.3 percent to 3,660.79 after the release of inflation data. Hong Kong’s Hang Seng Index slipped 0.1 percent to 24,448.95.
China’s annual consumer price inflation slowed to 0.7 percent in October from 0.9 percent in September, the National Bureau of Statistics reported earlier today – missing analyst expectations of 0.8 percent.
The annual rate of growth by the producer price index accelerated to 5.7 percent from 5.0 percent in September due to higher global oil and commodity costs.
Japanese markets rallied as tech stocks recovered from last week’s sell-off, with Advantest rising 1.3 percent and Tokyo Electron climbing 2.8 percent. Renesas Electronics surged 3.3 percent and Japan Steel Works soared 5 percent.
The Nikkei 225 Index jumped 2.3 percent to 58,775.50, while the broader Topix Index settled 3 percent higher at 3,818.16.
Seoul stocks ended a choppy session notably lower amid uncertainties facing the artificial intelligence sector. The Kospi Index dropped 0.8 percent to 5,018.85.
Tech stocks closed flat to mostly higher despite Nvidia opening an investigation into reports that CEO Jensen Huang was the target of a foreign intelligence effort.
Australian markets swung between gains and losses before finishing marginally higher, led by beaten-down mining stocks as banks and consumer discretionary stocks lagged.
While the S&P/ASX 200 Index ended little changed at 9,029.70, the broader All Ordinaries Index edged up 0.2 percent to 9,163.40.
Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index slipped 0.2 percent to 13,973.62 as Prime Minister Chritopher Luxon appeared to hang on to power as the head of a coalition government with a razor-thin majority.
Europe
European stocks have moved higher on Monday, heading into a high-stakes week defined by speeches from a slew of ECB officials, the release of U.S. inflation data, and regional growth that could influence expectations for monetary policy.
Euro zone bond yields started the week slightly lower as Brent crude futures fell below $97 a barrel following remarks by U.S. President Donald Trump that renewed military strikes on Iran were “highly unlikely” while talks to end their eight-month-old conflict continue.
Investors shrugged off weak German trade data, which showed the trade surplus narrowed in September despite rising exports.
While the German DAX Index is up by 1.1 percent, the French CAC 40 Index is up by 0.8 percent and the U.K.’s FTSE 100 Index is up by 0.7 percent.
In corporate news, Belgian-Dutch pharmaceutical company Argenx has soared after it agreed to acquire California-based Unnatural Products Inc. for up to $1.15 billion (€1.03 billion).
UniCredit has also spiked. The Italian lender upgraded its fiscal 2026 outlook and maintained profit targets ahead after reporting higher third-quarter profit and revenues.
Meanwhile, Nvidia’s Frankfurt-listed shares have slumped after the U.S. chipmaker said it would open an investigation into reports that CEO Jensen Huang was the target of a foreign6 intelligence effort.
Hannover Re shares have also fallen. The world’s third-largest reinsurer confirmed its full-year group net income target of at least €2.7 billion after third-quarter profit beat expectations.
French lender Credit Agricole has also moved lower after announcing it had proposed merging its Italian subsidiary with Banco BPM.
U.S. Economic News U.S. Economic News
The Commerce Department is scheduled to release its report on wholesale inventories in the month of September at 10 am ET. Wholesale inventories are expected to increase by 0.6 percent.
Also at 10 am ET. Chicago Federal Reserve President Austan Goolsbee is due to participate in a moderated Q&A before the “Leadership Greater Chicago Economics: Are We Ready for Tomorrow?” event.
At 12:15 pm ET, Richmond Federal Reserve President Thomas Barkin is scheduled to speak before the Greater Greer Chamber of Commerce.
The Treasury Department is due to announce the results of this month’s auction of $58 billion worth of three-year notes at 3 pm ET.
rttnews.com
