U.S. stock futures moved higher on Monday, led by gains in major technology stocks, even as investors remained cautious amid rising oil prices linked to the ongoing Middle East conflict.
Shares of Meta Platforms rose about 3% in premarket trading after reports the company is preparing large-scale layoffs as part of a push to improve efficiency while investing heavily in artificial intelligence infrastructure, News.Az reports, citing Reuters.
The social media giant joins other major tech companies such as Amazon and Block Inc., which have also announced job cuts tied to expanding AI operations.
RECOMMENDED STORIES
Artificial intelligence will remain a key market focus this week. Nvidia is hosting its annual developer conference, while Micron Technology is expected to release earnings soon. Meanwhile, Taiwan’s Foxconn has already issued a strong revenue outlook driven by AI demand.
Shares of Nvidia gained about 1% in early trading, while Micron climbed roughly 4% after analysts at RBC raised their price target. Tesla also rose about 1% after CEO Elon Musk said the company’s Terafab project to produce AI chips will launch within a week.
Despite the gains in tech stocks, investor optimism was limited by rising crude prices, which remained near $100 per barrel. The surge comes as shipments through the strategically important Strait of Hormuz remain largely disrupted due to the conflict in the Middle East.
Higher energy costs are expected to be a major topic at central bank meetings worldwide this week, including the upcoming policy decision by the Federal Reserve.
Markets currently expect the Fed to keep interest rates unchanged when its two-day meeting concludes Wednesday. According to LSEG data, traders now anticipate the first potential rate cut only after October.
As of early morning trading in New York:
U.S. equities have experienced significant volatility since the start of the Middle East conflict. However, they have performed better than many global markets thanks to a rebound in technology stocks and the fact that the United States is a net oil exporter.
The CBOE Volatility Index, often called Wall Street’s fear gauge, fell slightly on Monday.
Investors are also watching economic data expected later in the day, including U.S. industrial production and the New York Fed’s manufacturing index.
Meanwhile, economic officials from the United States and China are wrapping up talks in Paris that could pave the way for further discussions between Donald Trump and Xi Jinping at a potential summit in Beijing.