Stocks saw an uplift, primarily driven by a rebound in chipmakers, at the advent of a crucial week for Big Tech earnings. These earnings reports are anticipated to influence whether recent market volatility persists or if positive momentum returns. Nasdaq 100 futures increased by 0.8% to 0.9%, ending a three-day losing streak, while S&P 500 contracts climbed 0.4%. An exchange-traded fund tracking chipmakers experienced a premarket bounce of 2% to 2.5%. In Hong Kong, Alibaba Group Holding Ltd. rallied after showcasing a preview of its latest flagship artificial intelligence model, Qwen3.8 Max, which it describes as second only to Anthropic PBC's Fable 5, with shares rising as much as 5.4%.
Oil prices witnessed swings from gains to losses, with US crude settling near $82.60 a barrel, as traders assessed reports of a potential US-Iranian ceasefire proposal against a possible maritime ban on Saudi Arabia by Yemeni Houthis. Earlier gains were fueled by weekend attacks between Washington and Tehran. The conflict's impact on supply lines was evident as shipping through the Strait of Hormuz reportedly slowed sharply, with only four vessels crossing on Sunday. The risk of price pressure emerged as US gasoline prices climbed back above the $4-a-gallon mark. Bond yields rose in the US and Europe, with the yield on 10-year Treasuries advancing two basis points to 4.56%.
Alphabet Inc. and Tesla are scheduled to report quarterly earnings on Wednesday, followed by Intel on Thursday. These reports are critical, especially given that chip stocks, the S&P 500's largest driver in 2026, recently entered a bear market due to concerns that companies like Alphabet might not sustain large expenditures on AI infrastructure. Andrea Gabellone, head of global equities at KBC Securities, emphasized the importance of hyperscalers' monetization efforts and capital expenditure intentions to calm the market. Panmure Liberum's Joachim Klement noted that investor sentiment remains positively biased despite recent tech setbacks, suggesting renewed market stability this week.
