By: Karim Hammam
US stock futures recorded a notable rebound at the start of trading, supported by falling oil prices which eased inflationary pressures, while markets await the earnings reports of major technology companies amid global economic tensions.
Markets Rebound and Oil Prices Fall
Nasdaq futures rose by about one percent, while S&P 500 futures climbed by about 0.7 percent. This recovery came after a sharp sell-off witnessed in late-week trading. The drop in oil prices helped calm inflation fears, as Brent crude fell by nearly 1.8 percent to approach $108 a barrel, while West Texas Intermediate crude stabilized near $100.60, amid expectations of increased exports following potential sanctions waivers, despite ongoing concerns about energy supply stability.
Awaiting Major Tech Company Results
Markets this week are preparing for the release of quarterly earnings reports for a number of major companies such as Netflix, Tesla, and Meta, which will give investors clear indicators on the profitability of the technology sector and the sustainability of investment in AI infrastructure. In contrast, some stocks faced pressure, as shares of some companies declined for reasons related to operational and financial trends and management changes.
Mixed Performance in Asia and Global Economies
On the Asian front, markets remained under pressure as indices in Japan, South Korea, and Taiwan recorded slight declines. In contrast, the Chinese economy provided positive signals after third-quarter GDP growth exceeded expectations, supported by improved retail sales and industrial production. In other commodity and asset markets, gold recorded a slight increase supported by falling oil and US Treasury bond yields, while Bitcoin continued its gains amid investor anticipation of upcoming Federal Reserve decisions regarding interest rates.
