Stock Futures Bounce as Cooler Oil Calms Wall Street After AI Rout

Stock Futures Bounce as Cooler Oil Calms Wall Street After AI Rout

Futures turn green after Friday's worst session since June

U.S. stock index futures recovered on Monday, Nov. 2, 2026. Futures on the Dow Jones Industrial Average rose 0.4%, while those on the S&P 500 added 0.4%. Contracts for the Nasdaq-100 jumped 0.8% higher after the index briefly approached correction territory. After the open, the S&P 500 rose 0.5%, coming off its third straight losing week. The Dow Jones Industrial Average added 363 points, or 0.7%, and the Nasdaq Composite climbed 0.7%.

October split: Nasdaq posts worst month since March 2025

Falling crude gives relief as Iran diplomacy hopes grow

Easing oil prices powered the relief rally. Brent crude fell 5.8% to below $107 per barrel on hopes for progress in diplomatic efforts between the U.S. and Iran, after a report that President Donald Trump wants to give diplomacy with Iran more time. Other quotes put Brent crude down 4.2% to $108.68 per barrel, with benchmark U.S. crude down 4.2% to $99.74 a barrel. That is still far above roughly $65 per barrel a year earlier. Lower crude eased inflation fears and encouraged a cautious return to risk, with Treasury yields easing alongside.

AI spending under fire after Alphabet, Amazon and Intel results

At the heart of the sell-off is scrutiny of Big Tech's enormous AI buildout. Results from Alphabet and Amazon fueled concerns that AI spending is eroding the businesses financing those investments, while Intel shares collapsed after its report. Investors are demanding evidence that heavy capital expenditure will translate into profit, and several companies tapping the bond market to fund AI projects amplified debt worries. Market commentators say the AI trade is down but not out, calling the pullback par for the course in the early stages of AI development.

What comes next: Apple earnings, midterms and the jobs report

Discussion: After Big Tech spent heavily on AI and its stocks just suffered their worst month in over a year, would you buy the dip in technology shares or stick with defensive sectors, and what would convince you either way?