US stock index futures pointed to a higher opening on Monday, with technology shares expected to recover some of the losses recorded during the previous session. A decline in crude oil prices also contributed to the improvement in market sentiment.
Nasdaq 100 futures advanced 1.3%, indicating potential gains in technology stocks following Friday’s decline, which left the Nasdaq Composite at its lowest closing level in a month.
Investors appeared to be reassessing technology valuations after recent selling, partly driven by concerns about the scale of debt-financed investment in artificial intelligence infrastructure.
Oil prices also retreated after several sessions of increases. The decline followed an executive order signed by US President Donald Trump waiving key provisions of recently introduced sanctions against Russia. Trump said the decision was in the national interest of the United States.
The easing in crude prices followed a period of volatility linked to geopolitical developments, including renewed Iranian attacks in the Strait of Hormuz and uncertainty surrounding a reported energy ceasefire between Russia and Ukraine.
US crude oil futures had previously risen above $100 per barrel for the first time in a month.
Technology Shares Lead Previous Session’s Declines
US equities fell on Friday after recovering from an earlier decline to finish Thursday’s session mostly higher.
The Nasdaq Composite lost 572.99 points, or 2.1%, to close at 26,140.03. The S&P 500 declined 84.62 points, or 1.1%, to 7,659.44, while the Dow Jones Industrial Average fell 175.28 points, or 0.3%, to 52,002.41.
For the week, the Nasdaq declined 4.5% and the S&P 500 lost 2%. The Dow, however, gained 0.7%.
Technology stocks accounted for a significant portion of Friday’s selling, with investors continuing to assess the financing requirements and potential returns associated with artificial intelligence infrastructure investment.
Computer hardware companies recorded some of the largest declines. The NYSE Arca Computer Hardware Index fell 5.4%, reaching its lowest closing level in two months.
Semiconductor, networking and software shares also declined, contributing to the Nasdaq’s losses.
Airlines Decline as Energy Shares Advance
Outside the technology sector, airline stocks came under pressure as higher crude oil prices increased attention on fuel costs.
The NYSE Arca Airline Index fell 3.2% during Friday’s session.
Brokerage and biotechnology shares also recorded declines, while energy companies advanced alongside crude oil prices.
Oil market movements reflected uncertainty surrounding supply conditions, particularly following developments in the Strait of Hormuz and the reported deterioration of the Russia-Ukraine energy ceasefire.
The subsequent decline in crude oil futures on Monday provided a different backdrop for equity trading ahead of the US market opening.
US Industrial Production Exceeds Forecasts
On the economic front, Federal Reserve data showed that US industrial production increased by 0.7% in September, exceeding economists’ expectations of a 0.4% rise.
The August figure was revised to an increase of 0.1%, compared with the previously reported unchanged reading.
The September result indicated an acceleration in industrial activity compared with the previous month.
The report provided additional information on US economic conditions as investors assessed the outlook for growth, inflation and monetary policy.
Market attention remained focused on the potential recovery in technology shares, movements in energy prices and the implications of geopolitical developments for financial markets.