Stock futures move higher as oil prices fall
Stock futures moved higher Monday on the floor of the New York Stock Exchange in New York City as oil prices fell sharply, with investors bracing for a packed week of earnings results, jobs reports, and the upcoming midterm elections.
Stock Futures Rally as Oil Prices Slide
S&P 500 futures traded up 0.5%, while Nasdaq-100 futures gained 0.8%. Futures linked to the Dow Jones Industrial Average added 310 points, or 0.6%. Meanwhile, Brent crude tumbled 4.5% to $108.38 per barrel, and U.S. West Texas Intermediate futures pulled back more than 4% to $99.31.
Tech Sector Retreats Following Bruising October
These moves follow a losing week for major U.S. stock benchmarks, which were bogged down by selling pressure in technology shares as investors scrutinized names related to the artificial intelligence buildout. The tech-heavy Nasdaq and the S&P 500 logged a losing October amid AI spending concerns, with the Nasdaq suffering its worst losses since March 2025. The Dow rose almost 2% during the month as investors rotated into defensive areas like healthcare.
Wall Street Analysts Debate Artificial Intelligence Trade
Despite the tech sector’s retreat, 3Fourteen Research’s Warren Pies expressed confidence in the underlying sector dynamics during an appearance on CNBC’s “Closing Bell Overtime” on Friday. I just don’t see anything broken with the AI trade fundamentally,
he said, adding that technicals are another story.
Mike Dickson, head of research and quantitative strategies at Horizon, noted in a client note last week that rather than running for the hills amid heightened AI risks, investors are seeing plenty of return potential in other types of stocks.
Midterm Elections May Shift Control of the House
Attention now turns to Washington, D.C., as the midterm elections arrive on Tuesday. Democrats are expected to take control of the House of Representatives, while Senate control remains uncertain. Addressing market anxieties surrounding the political shift, Dickson added that it’s important to remember that stocks tend to stay steady regardless of which party gains control of Congress.
Payrolls Data and Corporate Earnings on Deck
Beyond the ballot box, investors are awaiting October’s nonfarm payrolls reading scheduled for release on Friday. Economists polled by Dow Jones expect the report to show an increase of 55,000 jobs on the month.
A fresh round of corporate earnings releases will accompany the economic data. Apple, a member of the Magnificent Seven,
is scheduled to report its financial results after the bell on Monday. McDonald’s and Qualcomm are slated to report later in the week.
European markets mirrored the positive sentiment early in the week. The Stoxx 600 benchmark traded 0.1% higher, reversing earlier losses. France’s CAC 40 advanced 0.4%, and Germany’s DAX rose 0.3%.