Key facts
- Wall Street futures advanced on Monday, with AI stocks leading the gains.
- Oil prices slid 2% on signs of Middle Eastern supply resolution and increased Saudi exports.
- US 10-year Treasury yields fell below 5% as oil prices eased.
- Chip companies like Intel and Marvell, along with Meta and Dell, saw significant gains.
- Accenture rose 6% after announcing a $2 billion investment in AI evaluation with Anthropic.
- US President Donald Trump indicated openness to meeting Iranian President Masoud Pezeshkian.
Wall Street futures advanced on Monday, led by AI stocks, as a 2% slide in oil prices pulled Treasury yields lower on signs that parties in the Middle East were open to a resolution. Concerns that had previously sparked a rout in the AI sector appeared to dissipate as investors focused on continued spending in the technology's development.
Chip companies such as Intel rose 5.4%, Marvell added 2.6%, Meta climbed 2.4%, and Dell advanced 2.7%. Accenture gained 6% after partnering with Anthropic to invest $2 billion in AI evaluation.
Despite continued threats exchanged between Iran and the US over the weekend, President Donald Trump stated he would be open to meeting Iranian President Masoud Pezeshkian, who is expected to attend the UN General Assembly this week. The fall in crude prices eased pressure on equities, with the 10-year US bond yield slipping below the 5% mark. Energy price-sensitive airlines like Delta and American gained about 1% each.
Markets see a 53% chance of another rate hike next month, according to CME Group's FedWatch Tool, following the Federal Reserve's first rate increase in three years. Commentary from at least 10 policymakers is scheduled this week, starting with Chicago Fed President Austan Goolsbee.
Dow E-minis were up 311 points, or 0.6%, S&P 500 E-minis were up 48.75 points, or 0.63%, and Nasdaq 100 E-minis were up 327.25 points, or 1.09% at 05:09 a.m. ET.
A diplomatic breakthrough between the United States and Denmark regarding Greenland also aided sentiment, likely keeping trade tensions at bay. US-listed shares of companies exposed to Greenland, such as Critical Metals, Greenland Mines, and Greenland Energy, saw significant advances.
US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng concluded talks on Sunday, during which Bessent proposed a new AI safety notification mechanism. Bitcoin added 3.5% to a seven-month high, lifting Coinbase and Strategy.
Warner Bros rose 7.6% amid reports of advanced settlement negotiations between Paramount and California's attorney general concerning a proposed merger.