FX.co ★ US Futures Inch Higher

US equity futures edged higher on Monday, rebounding after last week’s steep declines as the chip sector showed signs of stabilizing. Futures on the S&P 500, Dow, and Nasdaq 100 were up about 0.4%, with the Nasdaq 100 recovering after having tested more than two-month lows in the previous session. Major technology stocks traded mostly higher as investors continued to assess whether AI hyperscalers will slow spending on AI infrastructure in the coming quarters, a key driver of recent guidance upgrades for the surging chip-manufacturing industry. Alphabet is set to deliver its outlook on Wednesday, offering the latest read-through for capital expenditure trends across both semiconductor and software development. Fuel and energy prices remained elevated amid intensifying clashes between Iran and the US in the Middle East, dampening expectations for increased energy exports from the region. Even so, Treasury yields extended their recent pullback and stayed below recent highs. Credit-sensitive bank holding companies also remained firm, building on last week’s gains following strong earnings across the sector.