Nasdaq 100 futures pointed to a rebound on Monday as investors turned to Apple as a defensive shelter from AI spending worries. Chipmakers still carry the weight of October's selloff, and Tuesday's U.S. midterm elections add to the uncertainty.
Contracts on the Nasdaq 100 gained 0.84% to 28,772 by 0610 ET on Monday. Investors embraced Apple as a defensive shelter from the artificial intelligence capex storm, offsetting a lingering hangover in the semiconductor sector.
S&P 500 futures rose 0.6% to 7,623, while Dow Jones Industrial Average futures advanced 0.6% to 52,217.
Apple draws buyers as a capital-disciplined haven
Trading desks are treating Apple as an oasis of capital restraint amid growing fatigue over hyperscale AI spending. Alphabet and Meta Platforms have unnerved credit and equity markets by pouring tens of billions into datacenters and custom silicon with uncertain payback horizons. Apple's lighter infrastructure footprint has preserved its free-cash-flow engine.
Apple shares have climbed for four consecutive months and are up nearly 30% year-to-date, lifting the company's market capitalization above $5 trillion. John Ternus hosts his first quarterly earnings call as chief executive on Monday. Palantir Technologies and Berkshire Hathaway are also slated to report later in the session.
Chipmakers still absorb October's losses
Intel fell a record 30% after issuing a downbeat forecast, and Advanced Micro Devices dropped nearly 11% in the sector-wide re-pricing that followed. AMD reports quarterly figures on Tuesday.
The Nasdaq Composite tumbled more than 5% in October as AI multiples compressed, while the S&P 500 fell 0.9%. The Dow Jones Industrial Average, helped by rotational flows into defensive and cash-generative equities, gained 1.7%.
Midterms and payrolls loom
Voters head to the polls on Tuesday, with all 435 House seats and 35 Senate seats on the ballot. Recent polling places President Donald Trump's approval rating at 31%, as consumers voice frustration over persistent gasoline inflation and the conflict with Iran.
The October nonfarm payrolls report arrives Friday. Money markets continue to price a 78% probability of a 25-basis-point interest-rate increase in December.
Source: Investing.com
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