Meta Prepares for Major AI Layoffs Amid Stock Market Gains

U.S. stock futures rose, bolstered by Meta's gains due to planned AI-related layoffs. The tech sector remains strong as Nvidia prepares for its developer conference. Rising oil prices amid Middle East tensions constrain risk-taking, with central banks monitoring energy costs. U.S. equities outperform global peers despite market volatility.

U.S. stock index futures saw a rise on Monday, led by Meta's shares amid reports of imminent AI-related layoffs. Despite this, high crude prices influenced by ongoing Middle East conflicts put a damper on risk-taking activities.

Meta's premarket rise of 2.6% followed a Reuters report indicating plans to reduce its workforce by over 20% to counterbalance costly AI infrastructure investments. Similar moves have been seen earlier in the year with tech giants like Amazon and Block.

This highlight on AI also coincides with Nvidia's upcoming developer conference, with further tech performances expected from Micron's results and Foxconn's promising revenue forecast. Despite external tensions, U.S. equities, driven by rebounding tech stocks and strong energy sector performance, continued to fare better than global counterparts.

(With inputs from agencies.)