U.S. Futures Rise as Tech Rebounds Ahead of Key Q3 Earnings

U.S. stock futures climbed into positive territory late Monday as technology shares rebounded from a sharp selloff last week. The advance comes as investors prepare for a critical stretch of third-quarter earnings, with approximately 70 S&P 500 companies scheduled to report results this week. At 11:13 p.m. EDT, Dow futures were up about 0.25%, S&P 500 futures gained 0.21%, and Nasdaq-100 futures climbed 0.15%.

Monday’s session ended with mixed results for the major benchmarks, but technology stocks drove the recovery. The Nasdaq Composite led the advance, adding more than 290 points to close 1.11% higher, while the S&P 500 rose 0.41%. The Dow Jones Industrial Average slipped 0.07%. Chipmakers led the sector's rebound, with the iShares Semiconductor ETF (SOXX) closing up nearly 2% and the VanEck Semiconductor ETF (SMH) gaining 1.61%. Shares of Nvidia Corp., Micron Technology Inc., and Advanced Micro Devices Inc. all finished the day higher.

Market participants are closely watching this week's earnings releases, which are expected to set the tone for the broader technology sector. Ajay Rajadhyaksha, global chairman of research at Barclays, noted in a report that while fundamentals remain unchanged, fragile price action has led his team to turn neutral on risk assets and maintain a neutral duration stance. Katie Stockton, founder of Fairlead Strategies, added that the week is crucial for the S&P 500 and Nasdaq, which need to hold support levels amid widespread short-term oversold conditions.

Notable earnings reports later this week include Meta Platforms Inc. and Tesla Inc., alongside semiconductor firms Lam Research Corp. and Texas Instruments Inc. Results are also due from AI-related power companies Bloom Energy Corp. and Valero Energy Corp., as well as Netflix Inc.

Geopolitical uncertainty continues to weigh on sentiment through rising oil prices. Brent crude futures expiring in December traded at $109.88 a barrel, up about 0.3%, while WTI crude futures expiring in November were at $103.64 per barrel. Economist Peter Schiff warned on X that oil could hit $150 if the Strategic Petroleum Reserve runs dry after upcoming midterms, potentially sending gas prices to record highs.

Individual stocks saw varied action late Monday. Trump Media & Technology Group Corp. (DJT) shares fell 8%, their worst single-day drop since February, following President Donald Trump's record low approval rating. In contrast, Amazon.com Inc. (AMZN) surged nearly 5% after Morgan Stanley raised its price target and named it a Top Pick. Cerebras Systems Inc. (CBRS) slipped more than 5%, extending last week's sector selloff, while CoreWeave Inc. (CRWV) fell more than 1% in overnight trading.

U.S. long-dated Treasury yields remained elevated, with the 10-year yield at 5.138% and the 30-year yield at 5.473%. The iShares 20+ Year Treasury Bond ETF (TLT) was up 0.09%. Asian equities opened lower on Tuesday, with the KOSPI in South Korea, the Nikkei 225 in Japan, the SSE Composite in China, and Australian stocks all trading down.