Nasdaq futures climb more than 1% as Wall Street rebounds
U.S. stock futures advanced Monday as investors returned from a third consecutive losing week for the Dow, with technology shares leading the premarket rebound. The gains came despite persistent pressure from high oil prices, elevated Treasury yields and renewed tensions in the Middle East.
Highlights
- Nasdaq-100 futures gained 1.06% early Monday.
- S&P 500 futures rose 0.65%, while Dow futures added 0.68%.
- The Dow lost 1.7% last week, its third weekly decline.
- Oil near $100 and high bond yields remain market risks.
Nasdaq-100 futures were up 1.06% at 30,234, while S&P 500 futures gained 0.65% to 7,762.75 and Dow Jones futures added 0.68% to 52,435. The Federal Reserve last week raised its target range by 25 basis points to 3.75%-4.00%, its first increase since 2023, according to the CNBC.
Futures recover after difficult week
The early gains followed a weak stretch for U.S. equities. The Dow Jones dropped 1.7% last week, its poorest weekly performance since March, while the S&P 500 slipped about 0.1%. The Nasdaq Composite bucked the trend with a 0.7% advance.
Markets are balancing renewed geopolitical risks against demand for technology stocks. Middle East tensions intensified over the weekend after Iran-backed Houthis said they had targeted Saudi Arabia with missiles and drones. Washington and Tehran also exchanged warnings about further military action.
Asian markets were mostly firmer Monday. South Korea’s Kospi rose 2%, mainland China’s CSI 300 gained 0.71% and Australia’s S&P/ASX 200 was little changed. Japanese markets were closed for a holiday.
Rates and energy keep pressure on markets
The rebound comes against a more restrictive monetary backdrop. The Fed’s September rate increase reversed a three-year stretch without a hike, reflecting continued concern over inflation. The benchmark rate now stands at 3.75%-4.00%.
Oil prices remaining near $100 a barrel add another inflationary pressure point, while the 10-year Treasury yield hovering near 5% raises financing costs and can weigh on equity valuations. Technology stocks are particularly sensitive to changing expectations for long-term rates, making the Nasdaq futures rally notable.
Investors face a crowded risk calendar
Attention this week will extend beyond corporate earnings and interest rates. Markets are also watching U.S.-China economic discussions covering tariffs, critical minerals and artificial intelligence, while developments in the Middle East could quickly alter energy prices and inflation expectations.
Monday’s futures rebound therefore follows a difficult week without removing the forces behind the recent volatility. With the Dow coming off a 1.7% weekly decline, oil around $100 and Treasury yields near 5%, investors remain exposed to sharp shifts in both monetary and geopolitical expectations.
We also reported Volkswagen shares fell on Monday after Europe’s largest automaker sharply cut its 2026 profitability forecast.