U.S. stock index futures advanced across the board on Monday, extending positive momentum after all major indices closed higher last week. As of writing, Nasdaq 100 futures were up approximately 1.1%, S&P 500 futures gained 0.4%, and Dow Jones Industrial Average futures were largely flat near 52,900, just shy of the historic 53,000-point milestone.
Chip stocks staged a collective rebound in pre-market trading, serving as the primary driver for the technology sector's gains. Western Digital Corp rose about 3% and Teradyne, Inc. surged roughly 4%, helping to push the State Street Technology Select Sector ETF up over 1%. Marvell Technology, Inc. and Oracle Corporation also advanced more than 3% and 2%, respectively. Memory chip makers Seagate Technology Holdings plc and Micron Technology, Inc. similarly posted notable gains. This follows a week of significant pullback for the semiconductor sector, with the VanEck Semiconductor ETF declining for a second consecutive week, accumulating a drop of 3.2%.
Despite the rebound in tech shares, market attention remains focused on the recent trend of sector rotation. Financial, healthcare, and industrial sectors all closed at weekly record highs last week, effectively offsetting the consolidation pressure from semiconductors. Analysts note that investors are reassessing the high valuations of artificial intelligence-related stocks and gradually shifting funds towards industries with more attractive valuations and clearer earnings visibility. Some analysts have drawn parallels between the current market conditions and historical bubble periods, suggesting investor skepticism over tech stock valuations may persist.
A key market event this week is the release of the minutes from the Federal Reserve's June meeting. This meeting was the first chaired by the new President, Kevin Warsh, and the minutes are scheduled for release on Wednesday. Investors will scrutinize the minutes for the latest assessment by policymakers regarding the inflationary impact of rising energy prices, as well as for clues about any disagreements among officials.
In individual stock news, South Korean chipmaker SK Hynix Inc. is initiating its U.S. listing process this week, aiming to raise approximately $28 billion. This is seen as a significant test of market appetite for investments in AI-related companies. SpaceX is set to be formally included in the Nasdaq 100 Index on Tuesday, with its shares up about 1.7% in pre-market trading.
In the commodity markets, oil prices remained under pressure. Brent crude futures fell 0.5% to $71.76 per barrel, hovering near a four-month low, primarily influenced by the OPEC+ decision to increase production and the ongoing recovery of shipping traffic in the Strait of Hormuz.