semiconductor rebound – U.S. stocks were poised for a higher start as semiconductor shares rebounded and Treasury yields eased after a bond-market selloff linked to oil-driven inflation worries. Futures were marginally higher, oil prices pulled back amid a proposed temporary waiver o
Monday’s start on Wall Street is shaped by two quick turns: semiconductor stocks finding their footing again, and bond yields slipping back from a session high that had weighed on risk appetite.
U.S.. stock indexes were on track for a higher open as heavyweight semiconductor names recovered.. The 10-year Treasury yield. a benchmark for global borrowing costs. fell to 4.573% after climbing as much as 4.631% earlier in the session. the highest level since February 2025.. By 08:51 a.m.. ET, Dow E-minis rose 45 points, or 0.09%, S&P 500 E-minis were up 16 points, or 0.22%, and Nasdaq 100 E-minis gained 148.25 points, or 0.51%.
Oil prices also backed away.. Brent crude fell almost 2% after reports said the United States had proposed a temporary waiver on Iranian oil sanctions. easing some concerns about potential supply disruptions.. “Futures have come back a little bit because there are some unconfirmed reports that the U.S.. will allow some Iranian oil to be sold,” said Robert Pavlik, senior portfolio manager at Dakota Wealth.. “Yields are key to all of this because growth stocks, especially AI-related companies, are priced on forward-looking earnings.. When yields move higher, their current valuations come down.. That’s really the key issue for the market.”
The bond-market selloff the previous week was tied to a surge in oil prices. which intensified worries that inflation could keep borrowing costs elevated.. That mattered for the market even as Wall Street had rallied sharply in recent weeks: the benchmark S&P 500 and the tech-heavy Nasdaq hit record highs as investors leaned into enthusiasm around artificial intelligence and tried to look past the inflationary threat from soaring oil prices.
Traders are now pricing in a more than 40% chance the U.S.. Federal Reserve will raise interest rates in January, according to CME’s FedWatch tool, after last week’s hotter-than-expected inflation readings.. Still, Nvidia’s premarket move offered a bright spot.. Nvidia’s shares jumped 2.1% in premarket trading on Monday. with the world’s most valuable company scheduled to report results on Wednesday.. Expectations are high: Nvidia shares have risen 36% from a March low. and the Philadelphia SE Semiconductor Index has surged more than 60% this year on strong demand for AI-related chips.
Semiconductors weren’t the only area showing early strength.. Micron Technology rose 4% and Intel added 3.7%.. Beyond tech. Walmart—the largest retailer in the world—is expected to report earnings this week. offering another test of how U.S.. consumers are coping with higher energy prices and broader inflation pressures.
The pattern in the week’s swings is tightly connected: a surge in oil prices fed into bond-market turmoil. which pushed the 10-year Treasury yield higher and then. as oil eased and confidence returned around a potential Iranian sanctions waiver. yields retreated and semiconductor shares rebounded.. With growth stocks tied to forward-looking earnings. the shift in yields lined up with futures moving higher and investors keeping their focus on upcoming earnings. especially Nvidia’s Wednesday results.
Wall Street stock futures semiconductor rebound Treasury yields 10-year yield Brent crude Iranian oil sanctions waiver FedWatch Nvidia earnings AI chips Walmart earnings