US equity futures rose Monday, with technology stocks leading, after AI-related
trades endured a weak week. Falling oil prices provided temporary relief.
Traders are focused on this week’s potential catalysts: October manufacturing
data, Apple earnings and the US midterm elections. Daniel Kirsche, head of
technical analysis and strategy at Jefferies, said megacap tech weakness
supports his view of a broader advance and sector rotation but Friday’s selloff
raises questions about the overall outlook; Jefferies had expected a Q4 recovery
driven by improving market breadth with tech eventually rejoining. Mike Wilson,
chief US equity strategist at Morgan Stanley, said the June-start correction
appears to be in its “final stage” and breadth is improving, but warned the
market could still see risk-clearing events that trigger further declines and
create buying opportunities.
