5 Things to Know Before the Stock Market Opens on Monday

• Chip stocks rebounded over 2% in premarket trading after Friday's sell-off, with Intel surging after beating earnings expectations amid ongoing volatility around AI spending sustainability concerns
• The U.S. and Iran paused strikes over the weekend with mediators reporting 'significant' progress toward negotiations, pushing oil to its lowest level in a week and pressuring energy stocks down roughly 3%
• Nvidia is in talks to backstop up to $250 billion in financing for OpenAI to lease federal government-backed data center space in Ohio, highlighting increasingly complex circular financing arrangements in the AI sector that worry investors about a potential bubble

Market Summary: Monday Pre-Market Overview

Market Movements:

Stock futures surged Monday morning following last week's losses. S&P 500 futures rose 0.8%, Dow futures gained 1%, and Nasdaq futures climbed 1.3%. The major indexes posted declines last week—the second consecutive weekly loss for the S&P 500 and Nasdaq, and the third straight for the Dow—driven by concerns over tech companies' AI spending sustainability.

Geopolitical Developments:

WTI crude oil plunged 6% to approximately $84 per barrel after the U.S. and Iran paused military strikes following two weeks of heightened tensions. Mediators including Qatar and Pakistan reported "significant" progress toward peace talks, particularly regarding Strait of Hormuz traffic management. The energy sector retreated, with Chevron, ExxonMobil, and ConocoPhillips each down roughly 3% in premarket trading.

Sector Performance:

Chip stocks rebounded after Friday's sell-off, with the PHLX Semiconductor Index up over 2%. Nvidia, AMD, Broadcom, and Intel all gained ground. The Roundhill Memory ETF jumped 4% as Micron and Sandisk recovered from steep Friday losses.

Key Events This Week:

Major tech earnings dominate the calendar: Meta and Microsoft report Wednesday; Apple and Amazon Thursday. Other notable reports include Visa, Coca-Cola, Boeing, UPS, Ford, PayPal, Qualcomm, and Procter & Gamble. The Federal Reserve holds its two-day meeting, with Chair Kevin Warsh's announcement and press conference scheduled for Wednesday afternoon.

Notable Development:

Nvidia is negotiating to backstop up to $250 billion in financing for OpenAI to lease Ohio data center space, highlighting increasing circular financing in the AI sector and raising investor concerns about potential market bubbles.

Other Markets:

Gold futures rose 0.5% to $4,090/ounce; Bitcoin traded at $65,000; 10-year Treasury yield stood at 4.65%.