U.S. stock index futures climbed on Monday as AI-related shares rebounded from last week's sharp selloff, with falling oil prices and Treasury yields adding to investor optimism. The recovery matters for retirement accounts and index funds across the U.S. and Canada, where technology stocks carry heavy weight.

Why did AI stocks bounce back?

The S&P 500 and Nasdaq had posted their biggest weekly drop since late June on Friday, pressured by worries that higher interest rates could curb spending on AI infrastructure, especially among data center operators. Monday brought a partial reversal. Chipmakers led the way, with Broadcom up about 2.2% and Micron up 4.3%, while the Philadelphia Semiconductor Index rose 2.5%, on course to end an eight-day losing streak, according to Reuters. Amazon gained 2.3% after Morgan Stanley named it a top pick, and Goldman Sachs upgraded data center firm CoreWeave, whose shares had plunged more than 25% last week on worries over its $50 billion debt load.

What is the AI stock rebound?

The term describes the recovery in shares of companies tied to artificial intelligence, from chipmakers to cloud providers. It follows investor unease over how the costly AI build-out will be financed, a question that has weighed on the companies underpinning the U.S. bull market, now four years old. Sam Stovall, chief investment strategist at CFRA Research, said of last week's selloff: "I don't think that is over just yet."

How are oil and yields helping?

Brent futures fell after President Donald Trump waived some sanctions on Russia; Secretary of State Marco Rubio said the president would take up to 60 days to assess the economic impact. The benchmark 10-year yield slipped to 5.085%. Still, Iran reported another tanker hit a mine in the Strait of Hormuz, and shipping and insurance costs are keeping delivered oil prices higher.

What to watch next

Earnings from Meta, Tesla, SpaceX, Netflix, General Motors and GE Aerospace this week will shape sentiment. Meta is expected to beat Wall Street estimates when it reports Wednesday, according to Reuters.

FAQ

Why did markets fall last week?

Concerns that higher interest rates could slow AI infrastructure spending hit technology and data center stocks.

Which earnings matter most this week?

Results from Meta, Tesla and SpaceX are among the key reports investors will be watching.