AI Deals Boost Stock Futures Amid Economic Uncertainties

U.S. stock index futures climbed on Monday, bolstered by a wave of AI-related deals and softer labor market trends that strengthen hopes for an interest rate cut.

The tech market exhibited resilience even as the federal government shutdown showed little progress towards resolution, highlighting investors' consistent interest in tech stocks. This focus shifts towards the upcoming earnings season, poised to offer insights into the economy's trajectory. 'The current AI infrastructure buildout is fundamentally more durable than past cycles,' stated BofA Securities senior analyst Vivek Arya.

The delayed release of key economic data amid the shutdown has elevated reliance on alternative indicators, which suggest tepid hiring, and a Fed rate cut by 25 bps at its next meeting remains anticipated. As of 05:25 a.m. ET, Dow e-minis gained 72 points; S&P 500 E-minis increased by 21.5 points, and Nasdaq 100 E-minis rose by 127.25 points.

Goldman Sachs highlighted that military payroll deadlines might pressure lawmakers to resolve the impasse. Uncertainty over the data release timeline could limit the Fed's economic insight at its meeting. The third-quarter earnings season beginning next week shall be pivotal, capturing the attention of analysts like Arnim Holzer, who notes its significance for Fed data, with most companies expected to report by late October.

In specific stock movements, Micron Technology saw a 4% premarket rise after a Morgan Stanley upgrade, while crypto stocks including Coinbase Global and Riot Platforms gained as Bitcoin approached its all-time highs.