Nasdaq Steadies Amid AI Optimism and Middle East Tensions

Stock futures rose on Monday, particularly in the tech sector, as investors balanced between the promise of AI-driven growth and geopolitical unrest in the Middle East. While chipmakers like Nvidia and Micron rebounded from a recent downturn, concerns linger over economic fallout from the Iran conflict.

Monday saw a rise in S&P 500 and Nasdaq futures, buoyed by recovery in chip stocks after a previous plunge to two-week lows. Meanwhile, tensions in the Middle East persisted, keeping investors cautious amid market volatility.

Tech giants such as Nvidia, Broadcom, and Micron Technology experienced gains of up to 3.7% in premarket trading, rebounding from a big sell-off that erased a trillion dollars in market value last week. This retreat was attributed to fears of an overheated sector following disappointing results and tight monetary policies.

UBS Global Wealth Management remains optimistic about AI's future despite current uncertainties, as Citigroup predicts the S&P 500 could surpass 8,000 by 2026. However, the ripple effects of the Iran war and volatile energy prices are clouding this outlook, as evidenced by shifting interest rate expectations and rising crude prices.