SPY stock rises as oil tumbles ahead of Fed and tech week
SPY stock futures climbed Monday as Dow, S&P 500, and Nasdaq contracts rose and oil tumbled after the United States and Iran paused weekend strikes. Investors welcomed cooler energy prices ahead of a busy week featuring the Federal Reserve rate decision and mega-cap tech earnings, while energy shares fell and AI-linked names rallied in premarket trade.
Key Takeaways
- SPY stock and major index futures advanced as Brent crude slid below $90 a barrel.
- A weekend pause in U.S.-Iran fighting cooled oil prices and lifted risk appetite.
- AI-linked shares rose in premarket trading while Exxon Mobil and Occidental Petroleum fell more than 3%.
- Investors brace for the Fed decision and earnings from Microsoft, Meta, Apple, and Amazon.
Why did SPY stock and index futures rise today?
According to Yahoo Finance, Dow, S&P 500, and Nasdaq futures moved higher as oil prices tumbled more than 7%, with Brent crude futures trading below $90 a barrel.
Investing.com reported that by 6:48 a.m. ET, S&P 500 futures had climbed about 1.01%, Nasdaq 100 futures surged roughly 1.61%, and Dow futures advanced about 1.03% after all three major indexes posted weekly losses.
The SPDR S&P 500 ETF Trust, widely watched as the spy stock benchmark, tracked the broader relief bid as cheaper crude eased near-term inflation worries.
How are AI and energy stocks reacting?
AI-linked shares rallied in premarket trade even as energy companies sold off. Occidental Petroleum and Exxon Mobil fell more than 3% after Brent dropped over 8% to around $90 a barrel, Investing.com said.
CoreWeave rose 4% and Nebius Group gained 6% after the Wall Street Journal reported Nvidia is discussing roughly $250 billion in financing guarantees for OpenAI's planned data centre project in Ohio. SK Hynix rose 6.2% in U.S. premarket trading after South Korea unveiled approximately $950 billion of new AI initiatives.
For more coverage of AI market movers, see BlasterPost's Future Tech & AI Wonders hub.
What should investors watch this busy week?
Markets enter a packed stretch with the Federal Reserve's interest rate decision due Wednesday and a wave of Big Tech earnings, including Microsoft, Meta, Apple, and Amazon.
Yahoo Finance noted a continued oil decline could ease some pressure on the Fed, which is expected to hold rates steady while monitoring inflation, though a hike is not off the table. Nearly one-third of S&P 500 companies are also set to report this week.
Chip shares later faced pressure in early trade after reports that a Chinese state-backed firm began mass-producing key chipmaking equipment, sending Nvidia and ASML lower by over 4% at one point, according to Yahoo Finance—a reminder that the spy stock rebound remains sensitive to AI and geopolitics headlines.