Wall Street is poised for a positive open on Monday, with futures pointing higher as technology stocks get a boost from Nvidia's latest artificial intelligence chip announcement. This upward momentum is helping markets withstand renewed pressure from rising oil prices and geopolitical tensions in the Middle East.
Dow Jones Industrial Average futures added 143 points, or 0.28%, while S&P 500 futures rose 17.5 points, or 0.23%. Nasdaq 100 futures gained 86.75 points, or 0.29%, as of 05:18 a.m. ET, according to Reuters data.
Nvidia shares jumped 1.6% in premarket trading after the company unveiled its new RTX Spark PC chip, developed in collaboration with Microsoft. The chip is designed to bring advanced AI capabilities to laptops and desktops. Microsoft shares rose 2.8% in premarket trading.
The announcement weighed on other chipmakers, with AMD falling 3.4% and Intel dropping 2.9% before the bell. Qualcomm also declined as Nvidia's move highlighted the growing importance of on-device AI processing.
Brent crude futures surged nearly 3% to around $94 a barrel following renewed attacks in the Gulf, reigniting concerns about inflation and complicating the Federal Reserve's monetary policy decisions. The 10-year Treasury yield rose to approximately 4.46% as energy price fears pushed bond yields higher.
Investors are now looking ahead to a busy week of economic data and central bank commentary. The ISM manufacturing report, several Fed speakers, the Fed's Beige Book on regional business conditions, and Friday's May jobs report are all on the calendar. Economists expect an 85,000 increase in nonfarm payrolls, with the unemployment rate holding steady at 4.3%.
Fed officials speaking this week are expected to maintain a balanced tone, keeping both rate hikes and cuts on the table depending on incoming data, said Chris Weston, chief market strategist at Pepperstone. Kathleen Brooks, research director at XTB, warned that any delay in a U.S.-Iran deal could further unsettle markets.
Despite the headwinds from higher oil prices and rising yields, the AI-driven earnings story continues to support stock valuations. However, a strong jobs report or further escalation in Gulf tensions could quickly pressure richly valued technology stocks.
