US stock index futures edged higher on Monday as fresh artificial intelligence updates from Nvidia and Microsoft lifted technology sentiment. S&P 500 and Nasdaq-100 futures each gained 0.3%, while Dow futures rose 208 points, suggesting Wall Street may extend May’s momentum. The positive tone comes despite rising oil prices and continued uncertainty around US-Iran tensions.
Nvidia and Microsoft drive AI enthusiasm
Nvidia gained 1.6% in premarket trading after unveiling a new chip designed for AI integration in laptops and desktops. The product was developed through a three-year partnership with Microsoft, whose shares rose 2.8%. This reinforced the view that the AI trade is expanding beyond data centers into personal computing. However, rival chipmakers slipped, with AMD down 3.4% and Intel off 2.9%.
Chip-related stocks in focus
Cadence Design Systems jumped 8.2% after launching an autonomous engineering tool for chip design powered by Nvidia, while Micron advanced 5.3%, moving above $1,000 for the first time. Broadcom’s results later this week could further shape semiconductor sentiment.
Inflation and Fed risks persist
Oil prices climbed amid geopolitical tensions, raising concerns that energy costs could feed into inflation and complicate the path for interest rates. Markets are pricing a roughly 70% chance of a 25-basis-point rate increase by year-end. Investors now look to Friday’s US jobs report, Fed speakers, and the Beige Book for clues on monetary policy.
The Dow Jones Industrial Average rose approximately 2.5% in May, supported by broad-based gains across sectors. The current AI-driven rally could improve risk appetite, potentially benefiting crypto markets that often correlate with tech sentiment.
