US Stock Futures Rise as Wall Street Tries to Recover From Dow’s Third Losing Week

US stock futures moved higher on Monday as investors returned to Wall Street following a difficult week for the Dow Jones Industrial Average, with falling oil prices and strength in technology shares providing some early support.

The recovery comes after the Dow dropped 1.7% last week, marking its third consecutive weekly decline and its weakest weekly performance since March. The broader S&P 500 finished the week around 0.1% lower, while the technology-heavy Nasdaq bucked the trend with a gain of roughly 0.7%.

Futures pointed towards a firmer start to the new trading week. Reuters reported S&P 500 futures up around 0.4% and Nasdaq futures ahead by approximately 0.6% during Monday's global session. Technology shares were also stronger across several Asian markets, helping improve sentiment before the US opening bell.

The change in tone does not mean Wall Street's recent concerns have disappeared. Investors are still navigating an unusually complicated combination of high interest rates, expensive energy, volatile Treasury yields and geopolitical uncertainty.

Oil Prices Give Wall Street Some Relief

Energy prices are one reason investors are starting the week in a somewhat better mood.

Brent crude fell to around $102 a barrel on Monday, while US West Texas Intermediate dropped below the psychologically important $100 level. The decline followed signs that oil flows were proving more resilient than feared despite continuing instability in the Middle East.

That matters directly to Wall Street because expensive oil can feed into inflation throughout the economy. Fuel affects transportation, manufacturing, aviation and the movement of goods, meaning a sustained increase can eventually reach consumers through higher prices.

For the Federal Reserve, another inflationary energy shock makes monetary policy more difficult.

The central bank raised its benchmark interest rate by a quarter percentage point last week, its first increase in more than three years, as policymakers responded to persistent inflation pressures. The Fed also indicated that additional tightening could be necessary.

Markets are therefore paying close attention to whether the latest decline in crude develops into a sustained move or merely another temporary pause.

Lower oil prices would remove some pressure from the inflation outlook. A renewed surge could strengthen the argument for keeping monetary policy restrictive.

Treasury Yields Remain a Major Test for Stocks

Bond markets are creating another challenge.

US Treasury yields have risen sharply as traders adjust to the possibility that interest rates could remain elevated for longer. The benchmark 10-year Treasury yield moved above 5% during last week's volatile trading, a level that attracted considerable attention across global markets.

Higher yields can create problems for equities because government bonds begin offering investors more attractive returns without the same level of corporate risk.

They can also increase financing costs across the economy.

Businesses borrowing to expand may pay more. Consumers can face higher rates on loans. Mortgage costs can remain elevated, and companies with large amounts of debt may see their interest expenses increase.

Technology shares can be particularly sensitive to changing rates because investors often value fast-growing companies partly on profits expected many years into the future.

Despite that pressure, technology has recently shown greater resilience than some other parts of the market.

The Nasdaq finished last week higher even as the Dow declined, while semiconductor stocks helped lift Wall Street during Friday's session.

Artificial intelligence remains an important part of that strength. Expectations of continued spending on AI infrastructure, semiconductors and data centres are keeping investors interested in major technology companies even as the broader rate environment becomes more difficult.

Investors Turn to US-China Talks and the Week Ahead

Markets also begin the week with international diplomacy in focus.

US Treasury Secretary Scott Bessent has held talks with Chinese Vice Premier He Lifeng ahead of further high-level engagement between Washington and Beijing. Trade, tariffs, technology and artificial intelligence remain among the important economic issues affecting relations between the world's two largest economies.

For financial markets, even incremental progress can matter.

American and Chinese companies remain deeply connected through manufacturing, technology and global supply chains. Changes to tariffs, export restrictions or access to critical materials can quickly alter costs and earnings expectations for major corporations.

Investors are therefore likely to follow developments closely throughout the week rather than focusing only on domestic US economic data.

Corporate earnings will provide another test of sentiment. Companies reporting results this week include major consumer-facing businesses, giving investors another opportunity to assess whether households are continuing to spend despite higher borrowing and energy costs.

That consumer question is particularly important after months in which investors have repeatedly reassessed the strength of the US economy.

Strong spending can support corporate profits, but it can also keep inflation elevated and make the Federal Reserve more willing to maintain higher rates.

Weak spending produces the opposite concern: inflation may cool, but corporate earnings and economic growth could suffer.

Monday’s Rise Does Not Erase the Dow’s Losing Streak

The modest recovery in futures is encouraging for investors, but one positive opening does not reverse three weeks of weakness in the Dow.

The index's 1.7% decline last week was substantially larger than the S&P 500's small weekly loss and contrasted with the Nasdaq's gain.

That divergence shows how differently parts of the US market are currently behaving.

Technology and semiconductor shares continue to receive support from enthusiasm around AI investment. Other sectors are dealing more directly with higher borrowing costs, energy prices and uncertainty about economic growth.

Whether Monday's advance develops into a broader recovery will therefore depend on more than the opening futures numbers.

Investors will be watching oil, Treasury yields, Federal Reserve commentary, corporate earnings and international developments for evidence that the pressure responsible for the Dow's recent losing streak is beginning to ease.

For now, Wall Street is starting the week in positive territory — but after three consecutive weekly declines for the Dow, the market still has plenty to prove before the recent pullback can be considered over.