U.S. stock futures were mixed on Tuesday, after a sharp advance in artificial intelligence-linked shares drove Wall Street higher in the previous session. The move put attention back on whether recent enthusiasm around AI, softer oil prices and U.S.-China diplomacy can continue supporting risk appetite.
At 4:19 a.m. (Eastern time), futures tied to the S&P 500 were lower by 0.07%. Nasdaq-100 contracts declined 0.08%, while Dow Jones Industrial Average futures fluctuated near flat line.
Monday’s rally was led by large technology and AI-related companies. The S&P 500 rose 1.49%, marking its strongest session since Aug. 4. The Nasdaq Composite advanced 2.26% and closed at a record for the first time since June. The Dow added 366 points, equivalent to a 0.71% gain.
Meta was a key contributor to the strength in major technology shares. Its stock climbed 11% after the company’s Muse AI agent app reached the top position in Apple’s App Store, a development viewed as supportive for expectations around demand for chips.
Energy prices also helped improve market sentiment. U.S. West Texas Intermediate crude futures fell 2.07% to $93.80 a barrel, while Brent crude, the global benchmark, moved 0.31% lower at $100.03 a barrel.
Diplomatic developments between Washington and Beijing added to the positive tone at the start of the week. U.S. and Chinese officials completed discussions before a planned meeting between President Donald Trump and Chinese leader Xi Jinping. Treasury Secretary Scott Bessent described the preparatory talks as highly productive, encouraging expectations for cooperation on AI.
Bond markets also moved in a direction favorable to equities. The yield on the 10-year Treasury note fell to 4.945%. Yields had already been rising before last week’s Federal Reserve decision to increase its benchmark interest rate by a quarter percentage point, as markets weighed higher debt levels, costly oil and persistent inflation pressures.
Investors will now focus on the Washington summit between Trump and Xi. The agenda is expected to include AI, the Iran war, tariffs and rare earth metals.
Tuesday’s economic and policy calendar includes the Richmond Fed’s manufacturing survey. Markets will also monitor remarks from New York Fed President John Williams and Richmond Fed President Tom Barkin.
