- US stock futures gained on Sunday evening following the S&P 500’s losing week: Dow futures added 143 points, or 0.3%, S&P 500 futures rose 0.4% and Nasdaq-100 futures climbed 0.6%. Cooling oil prices helped, with Brent down 1.1% to around $115 a barrel and WTI down 1.2% to roughly $102 on Sunday evening.
- It is a heavy central bank week: the Federal Reserve, the European Central Bank and the Bank of Japan announce rate decisions on Wednesday, Thursday and Friday, respectively. Traders will listen to Fed Chair Kevin Warsh for any hint of a December hike, according to CoinDesk.
- Big Tech earnings will test the turbulent AI trade, with Alphabet and Microsoft reporting Wednesday after the close and Amazon on Thursday afternoon. Piper Sandler’s Billy Fitzsimmons said its third-quarter partner checks for Microsoft “were strong,” with demand for prepackaged AI solutions leading the list, while Amazon lifted its 2026 capital spending forecast to $220 billion last quarter.
- The early bounce faded somewhat into Monday’s Asian session, when Nasdaq 100 futures slipped 0.1% and bitcoin fell below $80,000 as investors braced for the Fed and tech earnings, according to CoinDesk. Brent had settled Friday at its highest level since April amid reports that the US and Israel could be planning strikes on Iran after the midterm elections.
What Happened?
Futures tied to the Dow, S&P 500 and Nasdaq-100 rose 0.3%, 0.4% and 0.6%, respectively, on Sunday as traders tried to recover from the S&P 500’s losing week. Oil prices cooled on Sunday evening, lending support to equity futures, after Brent settled Friday at its highest level since April. By Monday’s Asian session, however, Nasdaq 100 futures were down 0.1% as the AI selloff continued in Asian chip stocks.
Why It Matters?
This week stacks three major event risks on top of each other: a Fed decision at a time when markets are focused on a possible December hike, earnings from three of the biggest US tech companies, and an oil market reacting to Houthi attacks on Saudi Arabia and speculation about strikes on Iran. Microsoft, Alphabet and Amazon results will show whether AI spending, including Amazon’s $220 billion capex plan, is translating into revenue, which matters for an AI trade that CNBC describes as undergoing turbulence. A hawkish Fed combined with disappointing AI guidance would hit the same high-multiple stocks that led the market higher.
What’s Next?
Watch the Fed’s Wednesday statement and press conference, then Alphabet and Microsoft after the bell the same day, followed by the ECB and Amazon on Thursday and the Bank of Japan on Friday. Oil remains the wildcard, with further attacks on Saudi energy infrastructure able to push prices back up quickly. A clean read on AI demand from Big Tech could help futures hold their early bounce, while any capex cut or soft cloud growth would likely deepen the AI selloff.
Affected Tickers and Coins: SPY, QQQ, DIA, MSFT, GOOGL, AMZN
