U.S. equity futures moved higher on Monday, with technology stocks expected to lead the market after investors returned to the sector following last week’s sharp decline.
Nasdaq 100 futures advanced 1.2% before the opening bell, suggesting traders are taking advantage of lower valuations after the technology-heavy benchmark lost more than 4% over the previous week.
Market sentiment was further supported by South Korea’s announcement of a US$576 billion investment strategy focused on semiconductors and artificial intelligence. The programme, backed by Samsung and SK Hynix, aims to strengthen the country’s competitive position in the global chip industry.
Investors Monitor Fresh U.S.-Iran Negotiations
Attention also remained on developments in the Middle East after reports indicated that Washington and Tehran had agreed to suspend military action once again following weekend strikes.
President Donald Trump said on Truth Social that Iran had requested renewed negotiations, with talks expected to take place in Doha, Qatar.
“Once again, the familiar pattern has played out: renewed exchanges between the U.S. and Iran over the weekend briefly unsettled markets, only for reports of both sides returning to negotiations to restore confidence by Monday morning,” said Daniela Hathorn, Senior Market Analyst at Capital.com.
“That confidence, however, may be getting ahead of the facts,” she added. “While markets appear comfortable pricing a relatively swift normalization of energy markets, there remain clear signs that negotiations are far from straightforward.”
Investors Recover After Last Week’s Tech Sell-Off
Wall Street ended Friday with only modest declines after recovering from early losses, as investors weighed geopolitical developments and repositioned ahead of a busy week for economic data.
The Dow Jones Industrial Average fell 44.51 points, or 0.1%, to 51,876.11. The Nasdaq Composite declined 60.99 points, or 0.2%, to 25,297.62, while the S&P 500 slipped 3.47 points, or 0.1%, to 7,354.02.
For the week, the Dow gained 0.6%, while the S&P 500 lost 2.0% and the Nasdaq dropped 4.6%, reflecting continued pressure on large-cap technology shares.
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