US stock futures moved higher on Monday as investors monitored the recovery in Middle Eastern oil shipments, renewed fighting in Yemen and a proposed artificial intelligence safety arrangement between the United States and China.
At 06:58 GMT, Dow Jones futures had gained 239 points, or 0.5%. S&P 500 futures were up 39 points, also 0.5%, while Nasdaq 100 futures rose 218 points, or 0.7%.
The gains followed a mixed session on Wall Street on Friday. The S&P 500 and Nasdaq Composite finished higher, while the Dow Jones Industrial Average edged lower.
US Treasury yields increased across the maturity curve, with expectations for another Federal Reserve interest rate rise before the end of 2026 remaining broadly stable.
Vital Knowledge analysts said companies supplying the technology and infrastructure needed for artificial intelligence, including chipmakers, accounted for much of Friday’s equity market gains.
The analysts also highlighted the Bank of Japan’s latest interest rate decision. Although the central bank raised borrowing costs, two policymakers voted to leave rates unchanged, making the outcome less restrictive than some investors had expected.
The yen subsequently weakened, prompting concern among the analysts that Japanese authorities might sell US Treasury holdings to support the currency.
Yemen Fighting Threatens an Important Oil Export Route
Military developments in Yemen remained a focus after reports of heavier fighting between Iran-backed Houthi forces and Saudi-aligned groups over the weekend.
The New York Times, citing a Saudi army officer, reported clashes in mountainous territory in southwestern Yemen on Sunday.
The fighting involves positions near the Bab el-Mandeb Strait, which connects the Gulf of Aden with the Red Sea and provides an important passage for international shipping.
Saudi Arabia has relied on this route to maintain crude exports following disruptions to traffic through the Strait of Hormuz.
The Houthis also claimed to have launched missile and drone attacks towards Riyadh and targeted Saudi oil facilities in retaliation for Saudi air strikes in Yemen, according to The New York Times.
The developments have raised concerns about the security of another major shipping route at a time when energy supplies from the region are already under pressure.
Saudi Export Recovery Helps Push Oil Lower
Oil prices nevertheless declined on Monday as shipping data pointed to an improvement in Saudi crude exports.
Kpler figures showed Saudi shipments recovering to slightly more than 4 million barrels per day so far in September, compared with 2.4 million barrels per day in August.
Saudi authorities are also seeking to restore operations at the damaged East-West pipeline, although analysts cited in media reports have questioned whether flows can resume as quickly as planned.
Reuters reported that the head of US Central Command said the volume of crude oil, cargo and liquefied natural gas transported over the preceding two weeks exceeded that of any comparable period during the previous six months.
Brent crude futures fell 2.1% to $101.66 a barrel, having briefly traded near $110 during the previous week.
The decline came despite further exchanges of threats between Washington and Tehran.
President Donald Trump threatened action against Iran’s leadership unless Tehran pursued an agreement, while Iranian military officials warned they would retaliate against renewed attacks.
The recovery in export volumes has eased some immediate supply concerns, but the conflict and the fighting near Bab el-Mandeb continue to present risks to energy transportation.
US and China Consider AI Safety Notifications
Artificial intelligence policy was another area of investor attention following talks between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng on Sunday.
The discussions included a proposed notification mechanism intended to address AI-related safety concerns, particularly threats involving national security.
The proposal is expected to be reviewed by Trump and Chinese President Xi Jinping at their scheduled summit later this week.
The talks follow warnings from some technology executives and researchers about the potential consequences of increasingly advanced AI systems, including cybersecurity risks and concerns about maintaining control over their operation.
Other industry leaders have disputed more severe projections.
Nvidia Chief Executive Jensen Huang told CBS News that there was a “0% chance” of AI causing humanity’s extinction in 2030, rejecting a scenario suggested by some figures in the industry.
Huang also said: “scaring people is unnecessary. It is irresponsible.”
Trump Signals Plans for New AI Initiative
Trump separately said over the weekend that he intends to appoint an adviser to establish what he called an “AI force.”
He did not disclose the proposed initiative’s remit, membership or launch date.
In a social media statement, Trump said his administration would support the industry’s expansion while using existing criminal and civil legal systems to address wrongdoing.
The announcement comes ahead of the planned US-China summit, where the proposed AI safety notification mechanism is expected to be considered.
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