Key facts
- US stock futures rose as oil prices eased ahead of a busy week for corporate earnings and the Federal Reserve.
- Around one-third of S&P 500 companies are set to report earnings, with a focus on AI monetization.
- Meta and Tesla shares fell last week after their results, raising concerns about AI spending and revenue.
- Elon Musk predicted neocloud consolidation as markets tighten access to money for AI-dependent companies.
- The Federal Reserve's rate decision is due Wednesday, with a pause widely expected.
- US-listed shares of Brazilian companies tumbled after President Lula da Silva won a fourth term.
US stock index futures edged higher on Monday as crude oil prices retreated from last week's surge, lifting sentiment at the start of a week dominated by corporate earnings and the Federal Reserve's interest-rate decision. About one-third of S&P 500 companies are scheduled to report earnings this week, including hyperscalers Alphabet, Microsoft and Amazon.com, whose results would be closely watched for signs that hefty AI investments are paying off. The AI trade has stumbled this month as fears grow that debt-fueled data-center spending could prove unsustainable in the face of rising borrowing costs. Elon Musk said in an X post on Sunday that markets have "almost entirely shut off access to money" for companies without substantial revenue independent of AI data centers, and predicted neocloud consolidation. Crude oil prices eased on Monday after hitting a near six-month high last week. On Sunday, Qatari mediators traveled to Tehran as part of an effort to de-escalate regional tensions in coordination with the United States. The Fed's rate decision is due on Wednesday, with a pause widely expected. Traders still see a December hike as firmly possible, and at least two 25-basis-point increases by mid-2027, according to LSEG data. The Fed's preferred inflation gauge, the Personal Consumption Expenditures index for September, is due on Thursday. Third-quarter GDP, expected to show 3.2% growth, is also due this week. US-listed shares of Brazilian companies tumbled after President Luiz Inacio Lula da Silva won a historic fourth term on Sunday, in a shock result that defied polls. Surgery Partners jumped 20.9% following media reports that US-based not-for-profit health system Bon Secours Mercy Health is in late-stage talks to buy a majority stake in the surgery operator.