Technology Boosts U.S. Futures as Fed Decision Awaits

SadaNews Economy - U.S. stock index futures rose on Monday, led by gains in "Meta" stocks, following a report that the tech giant is preparing for widespread layoffs in the artificial intelligence sector. This comes as rising crude oil prices due to the ongoing conflict in the Middle East dampened investor appetite for risk.

"Meta" shares increased by 2.6% in pre-market trading after Reuters reported that the company plans to cut its workforce by 20% or more to offset costly investments in artificial intelligence infrastructure and prepare for the efficiency that AI-supported workers will achieve. This move follows similar announcements from major companies like "Amazon" and "Block" earlier this year.

Artificial intelligence is expected to remain the focus of attention this week, coinciding with Nvidia's annual developer conference and the announcement of results from "Micron". Taiwanese electronics giant "Foxconn" also issued strong quarterly revenue forecasts.

Matt Brietzman, Senior Equity Analyst at "Hargreaves Lansdown" who holds shares in chip companies, stated, "If Jensen can prove that Nvidia has the capability to lead the market not only in building AI but also in implementing it in daily use, this event could be a pivotal moment in building confidence that Nvidia will remain the leading name in the next phase of the AI race."

Nvidia shares rose by 1.1%, while Micron shares increased by 4.4% after the brokerage "RBC" raised its target price. "Tesla" shares also climbed 1% after CEO Elon Musk announced that the "Terafab" project for AI chip manufacturing would launch in seven days.

However, investors remained cautious as crude oil prices stabilized at $100 per barrel amid ongoing closures of most shipments through the vital Strait of Hormuz, following failed calls by U.S. President Donald Trump to form a coalition to secure safe passage.

The impact of rising energy costs is likely to be the central focus of central bank meetings globally this week, as the "Federal Reserve" will also have to consider tariff costs and a weak labor market. Interest rates are expected to remain unchanged at the end of the two-day council meeting on Wednesday, with traders pushing back expectations of a rate cut of at least 25 basis points to after October, according to data collected by the London Stock Exchange Group.

At 7:12 AM EST, Dow Jones futures rose by 228 points, or 0.49%, S&P 500 futures increased by 46.5 points, or 0.70%, while Nasdaq 100 futures gained 199.5 points, or 0.82%.

U.S. Stocks Outperform Global Counterparts

Major indices on "Wall Street" have seen sharp fluctuations since the beginning of the war, as traders have tried to assess its implications for the economy. Despite a decline in the past two weeks, U.S. stocks have outperformed their global counterparts, bolstered by a rebound in previously falling tech stocks, along with the U.S. being a net exporter of oil.

The Chicago Board Options Exchange volatility index fell by 1.67 points to 25.52 on Monday, while futures for the interest-rate-sensitive "Russell 2000" index rose by 0.8%. Industrial production data for February and the manufacturing index from the New York Federal Reserve are due later on Monday.

In related news, top U.S. and Chinese economic officials were scheduled to conclude their talks in Paris, with insiders indicating potential areas of agreement in agriculture, critical minerals, and managed trade, which may be discussed between U.S. President Donald Trump and Chinese President Xi Jinping in Beijing.

Investors are also monitoring currency markets, with the Japanese yen stabilizing around 160 yen to the dollar, its lowest level since the last central bank intervention. Energy stocks like "Occidental" and "ConocoPhillips" saw slight gains, while travel stocks like "Delta" and "Norwegian Cruise" remained stable. Cryptocurrency stocks, including "Stratig", rose by 4.2% as Bitcoin's price increased by more than 2.7%.

The discount retailer "Dollar Tree" posted a 1% gain in volatile trading following its quarterly results and future forecasts.