US Futures Extend Rebound

US equity futures were firmly higher on Monday, rebounding from losses last week as a pullback in oil prices softened Treasury yields and momentarily dampened a deteriorating macroeconomic backdrop. Contracts for the S&P 500 and the Dow rose around 0.6% and Nasdaq 100 gained up to 1%. Signs that the GCC extended diplomatic efforts for Tehran to lift their blockade on fuel tankers drove crude oil and product prices to ease further from their peaks this month, hence easing the recent pressure on Treasury securities. Lower credit costs improved the outlook for AI hyperscalers to continue issuing record levels of debt, supporting chip producers and AI infrastructure stocks. The sector was also impacted by debates on risks around AI safety. Intel, AMD, Seagate, Marvell, and Western Digital rose between 3% and 5%. Meanwhile, Meta added more than 2.5% on positive responses to its Muse AI agent. Banks also edged higher on lower borrowing costs.