U.S. stock futures climb as investors return to AI trade after selloff

Investing.com-- U.S. stock futures rose on Sunday evening, led by Nasdaq futures, as investors cautiously returned to technology shares after a sharp selloff in artificial intelligence-linked stocks last week, while a busy earnings calendar offered a fresh test of market sentiment.

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S&P 500 Futures rose 0.5% to 7,739.75 points, while Nasdaq 100 Futures climbed 1% to 29,686.75 points by 21:10 ET (01:10 GMT).Dow Jones Futures inched 0.1% higher to 52,272.0 points.

The modest rebound followed a bruising week in which concerns about the cost of financing AI infrastructure and the sustainability of technology valuations weighed on growth stocks.

The NASDAQ Composite fell 4.5% last week, ending a four-week winning streak, while the S&P 500 lost nearly 2%, its steepest weekly decline since late June. The Dow Jones Industrial Average gained 0.7%.

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Chip stocks were among the hardest hit, with the Philadelphia Semiconductor Index hitting its longest losing streak since the 2008 financial crisis, as investors reassessed the outlook for AI-related spending.

Nvidia-backed data centre operator CoreWeave (NASDAQ:CRWV) was a key focus of investor concerns. CoreWeave fell 12% on Friday, bringing its five-day decline to about 25%.

Investors have grown more concerned that heavily indebted AI infrastructure companies may struggle to generate returns quickly enough to cover rising financing costs.

Attention now turns to earnings from major technology companies this week, including Meta Platforms (NASDAQ:META) and Tesla (NASDAQ:TSLA).

Oil prices and geopolitical developments also remained in focus. Oil prices eased in early Asian trading on Monday after U.S. President Donald Trump waived sanctions and tariffs on Russia, a move that could increase Russian fuel supplies.

Brent crude futures expiring in December fell more than 1% to $108.52 a barrel, while U.S. West Texas Intermediate slipped 0.3% to $101.12.

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