US futures rebound as AI earnings test looms; France pressures Europe
SPY•US futures rose ahead of major technology earnings, with Nasdaq futures up 1% and S&P 500 futures up 0.4%. Concerns about France’s fiscal outlook weighed on European markets, while oil prices fell after the US waived some Russian sanctions.
1. US futures rise
Wall Street futures climbed on Monday ahead of results from Meta, Tesla and chipmakers, as investors looked for evidence that AI spending is generating revenue and profit. Meta is among five AI hyperscalers expected to raise combined capital expenditure to about $1.2 trillion next year, Goldman Sachs estimates. US earnings are still expected to rise about 30%, largely driven by technology.
2. French concerns weigh
French fiscal concerns and weekend unrest weighed on European stocks, the euro and government bonds. Paris blue chips fell 1.5%, the STOXX 600 slipped 1% and banking stocks dropped 2.1%. France’s 10-year bond yield rose 9 basis points to 4.875%, widening its spread over Germany’s.
3. Oil and Asia
Brent crude fell 1.3% to $108.4 a barrel after settling at a five-month high on Friday, following the US decision to waive some sanctions on Russia. Asian shares were mixed, while China’s economy expanded 4.5% in the third quarter, slightly ahead of expectations.
