Lower oil prices and easing rate hike bets lift U.S. equity futures before key AI sector earnings reports this week.
U.S. equity futures rose on Monday, with the S&P 500 up 0.5% and Nasdaq futures climbing 1.1%, as oil prices retreated on expectations of increased supply. Brent crude fell 0.2% to $71.95 a barrel, nearing four-month lows, after OPEC+ agreed to boost output targets by 188,000 barrels per day starting in August.
The S&P 500 rallied 1.8% last week, while Europe’s STOXX 600 gained 2.7%, as traders scaled back rate hike bets amid cooling energy costs. However, some tech sectors, particularly chipmakers, lagged as investors awaited earnings from AI-related companies to gauge potential market bubbles.
European stocks slipped 0.3% after hitting record highs earlier in the session, reflecting cautious sentiment ahead of corporate results. Analysts noted that lower oil prices could benefit growth-sensitive sectors that underperformed in recent months.