Stock Market Today: Futures Decline After Winning Week as Oil Prices, Treasury Yields Jump; Chip Stocks Fall

Chip stocks fell in premarket trading Monday.Credit: Michael M. Santiago / Getty Images Stock futures pointed lower Monday after major indexes recorded weekly gains, as oil prices and Treasury yields surged. Nasdaq 100, S&P 500, and Dow Jones Industrial Average futures were down 1%, 0.5%, and 0.5%, respectively, in recent trading. Major U.S. stock indexes rose Friday and registered weekly gains, with the Dow snapping a three-week skid, as oil prices and Treasury yields declined. This week, investors will be focused on the releases of the latest Personal Consumption Expenditures (PCE) data, due Wednesday morning, and the U.S. jobs report for September, slated for Friday morning. Oil prices jumped Monday after President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz for seven days. U.S. benchmark West Texas Intermediate crude futures rose 4.1% to $96.20 a barrel, while Brent crude futures, the international benchmark, were 4% higher at $108.45. Amid increased expectations of a Federal Reserve interest-rate hike at its late-October meeting, the 10-year Treasury yield—which serves as a benchmark for a wide range of interest rates, including those for mortgages, corporate bonds, and other loans—surged to near 5.24%, up seven basis points from Friday’s close and its highest level since 2007. Per CME FedWatch, traders see a 70% likelihood of a Fed rate hike next month, up from 56% one week ago. Shares of chipmakers and other AI-related companies were among the biggest decliners early Monday, with Intel (INTC) down more than 3% in heavy premarket trading and Micron Technology (MU) 2.5% lower. Roundhill’s Memory ETF (DRAM) fell 3.5% and the broader iShares Semiconductor ETF (SOXX) was down 2.5%. All of the Magnificent Seven mega-cap tech stocks pointed lower before the bell, with Meta Platforms (META) shares falling 3% following a nearly 3.5% drop Friday. The Roundhill Magnificent Seven ETF (MAGS) was down 1%. Nvidia (NVDA) announced its Open Agent Safety Platform “to strengthen AI security from agent testing to deployment,” and shares slipped 0.3%. Bitcoin traded around $83,000, down from overnight highs near $85,000, and shares of crypto-tied stocks Robinhood Markets (HOOD), Coinbase Global (COIN), Strategy (MSTR), Mara Holdings (MARA), and Circle Internet Group (CRCL) all pulled back. Gold futures sank 3.1% to $4,190 an ounce. The U.S. dollar index, which tracks the value of the greenback against a basket of foreign currencies, was 0.2% higher at 101.13. Read the original article on Investopedia