US stock futures pointed to a firmer opening on Monday as oil prices retreated from last week's surge, offering some relief after consecutive weekly losses on Wall Street.
Dow Jones futures gained around 200 points, while S&P 500 futures edged higher and Nasdaq-100 futures hovered near flat as investors prepared for a crucial week of corporate earnings and the Federal Reserve's interest-rate decision.
Brent crude futures fell around 1.7% to $114.77 a barrel, while US West Texas Intermediate crude declined about 2% to $100.97, as per CNBC reports.
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The pullback followed a rally that pushed Brent to its highest level since April on Friday, fuelled by concerns over possible military escalation involving the US, Israel and Iran, alongside threats to regional energy supplies.
Qatari mediators travelled to Tehran on Sunday as part of efforts to ease tensions in coordination with Washington.
Despite Monday's recovery attempt, the broader market remains under pressure. The S&P 500 and Nasdaq Composite recorded losses for a second consecutive week as rising energy costs, higher bond yields and doubts about the sustainability of artificial intelligence investments weighed on sentiment.
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AI Spending Faces Its Biggest Test
Around one-third of S&P 500 companies are due to report quarterly results this week, including Alphabet, Microsoft and Amazon. Investors will scrutinise whether their substantial AI investments are translating into stronger revenue, margins and cash flow.
The scrutiny follows a mixed response to results from major technology companies last week. Meta disappointed investors after increasing its annual AI spending forecast again and announcing a $35 billion stock offering. Its shares fell in premarket trading on Monday. Tesla, meanwhile, advanced after Barclays upgraded its rating to overweight.
AI infrastructure companies remained under pressure. CoreWeave and Nebius have each lost more than 30% of their market value this month.
On Monday, CoreWeave fell 5.4% and Nebius declined 3.9% in premarket trading. IREN and Applied Digital also traded lower. Elon Musk warned of consolidation among companies reliant on AI data-centre spending.
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Fed Decision, GDP And Inflation Data Ahead
The Federal Reserve's policy announcement on Wednesday is another major catalyst. Markets broadly expect rates to remain unchanged after September's hike, although traders continue to see a possible increase in December.
Investors will also monitor September's Personal Consumption Expenditures inflation index and third-quarter GDP data, both due Thursday.
Economists expect the US economy to have expanded at an annualised 3.2% pace during the quarter. The November 3 US midterm elections add another source of uncertainty.
Elsewhere, US-listed Brazilian stocks slumped after President Luiz Inacio Lula da Silva secured a historic fourth term, while Surgery Partners surged on reports of acquisition talks.
With oil easing and earnings season gathering momentum, futures indicate a possible rebound. Whether gains hold will depend on corporate guidance, the Fed's policy signals and developments in the Middle East.
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