Stock futures rebound as oil nears $110, AI earnings loom

U.S. stock futures (SPX) advanced as investors prepared for a busy week of corporate earnings and Chinese economic reports, while oil prices remained near $110 a barrel amid escalating geopolitical tensions. S&P 500 futures (SPX) rose 0.3% and Nasdaq 100 (NDX) contracts gained 0.7%, recovering some ground after Friday’s technology-led selloff.

The rebound followed a turbulent session in which the Philadelphia Semiconductor Index plunged 3.8% (SOX) and the VIX (VIX), a measure of expected stock-market volatility, reached its highest intraday level in four months. Investors have grown increasingly concerned about elevated technology valuations, the profitability of artificial intelligence investments and the prospect of persistently high interest rates.

For investors, the coming week could provide a crucial test of the AI-driven stock rally as more than 70 S&P 500 companies report earnings, including Tesla (TSLA) and Meta Platforms (META). Their results and spending forecasts may help determine whether enthusiasm for AI infrastructure can withstand scrutiny over costs and returns. Meanwhile, elevated energy prices threaten to sustain inflation, potentially limiting the Federal Reserve's ability to lower borrowing costs.

Brent crude (CO1:COM) slipped about 1% after surging Friday to $110 a barrel for the first time since May, while U.S. benchmark West Texas Intermediate (CL1:COM) traded near $101. Brent has climbed roughly 80% this year as fighting in the Middle East and Ukraine disrupted energy supplies. European diesel futures have more than doubled, adding pressure to transportation and manufacturing costs.

Security threats to energy infrastructure continued over the weekend. Houthi rebels targeted Saudi Arabia's Yanbu oil-export hub, while two tankers reportedly came under attack in the Persian Gulf. The U.S. military said it helped escort more than 100 million barrels of oil through the Strait of Hormuz during the preceding week, suggesting shipments are continuing despite heightened risks.Tensions surrounding Russia added another complication.

President Donald Trump defended a feeble agreement allowing additional Russian diesel exports and postponed further sanctions in an effort to preserve negotiations over the war in Ukraine. The arrangement has drawn criticism from lawmakers in both parties, while Russian and Ukrainian forces continued attacking each other's energy facilities. Disruptions to fuel supplies have also weighed on government bonds, as higher oil prices threaten to keep inflation elevated.

Investors will also scrutinize China's third-quarter economic growth figures and other indicators for signs of improvement in the world's second-largest economy. Chinese authorities recently encouraged corporate share purchases and sought to discourage selling after a technology-driven decline pushed the CSI 300 Index to its lowest level since August 2025.

Although economists anticipate a modest improvement in growth, weak consumer spending, subdued private investment and the prolonged property slump remain significant obstacles.

Chinese policymakers could provide further clues about potential economic stimulus during the Financial Street Forum beginning Monday. Meanwhile, the Federal Reserve has entered its customary communications blackout ahead of its Oct. 28 interest-rate decision. With earnings, inflation risks and geopolitical uncertainty converging, investors face another potentially volatile week across stocks, bonds and commodities.