• U.S. equities rose Monday, led by a recovery in technology and AI-related shares after October’s sharp sell-off.
  • Nasdaq-100 futures gained 0.62% premarket, while S&P 500 and Dow futures also advanced, supported by falling oil prices.
  • Investors await major earnings and Tuesday’s midterm elections, with volatility expected to persist.

Tech Stabilization Lifts Sentiment

U.S. stocks were poised to extend gains on Monday, November 2, 2026, as technology shares steadied following a bruising October. Nasdaq-100 futures rose 0.62% by 8:06 a.m. ET, while S&P 500 and Dow futures also pointed higher, according to Reuters (TRI). The move suggests renewed buying interest in the tech sector, which led the broader market lower last month.

The Nasdaq Composite fell 5.3% in October, its worst monthly performance since March 2025, according to Investopedia. The sell-off erased more than $2.5 trillion from the Nasdaq-100’s market value, bringing the index near correction territory. Investors have grown increasingly skeptical of the massive AI investments being made by major technology companies, particularly as some fund those bets with debt amid rising borrowing costs.

“What institutional investors like us are really focused on is regulatory stability,” said a portfolio manager at a large asset manager, speaking on condition of anonymity. “But when it comes to AI spending, the market is demanding proof of returns, not just revenue growth.”

Oil Prices Slide, Earnings in Focus

Oil prices fell more than 4% on Monday as diplomatic talks raised hopes of easing Middle East supply disruptions. The decline in energy costs helped lift risk sentiment, though a single day’s move does little to alter the broader inflation picture. Investors are also parsing a mixed batch of corporate earnings.

More than four-fifths of S&P 500 companies that have reported so far have exceeded estimates, according to FactSet (FDS) data cited by Investopedia. However, the size of those beats has been smaller than in recent years, which helps explain why seemingly strong results have failed to satisfy investors.

Intel (INTC) remained under pressure, down about 1% premarket, after forecasting quarterly revenue below expectations and saying it does not expect positive cash flow this year. Apple (AAPL) is due to report after Monday’s close, while AMD (AMD) results are expected later in the week. Estée Lauder (EL) rose 2.4% premarket after raising its annual sales and profit forecasts, offering evidence of company-specific strength outside technology.

Midterms and AI Spending in Spotlight

Tuesday’s U.S. midterm elections will determine control of Congress, a key focus for markets. Reuters reported that the possibility of divided government is a major consideration, with Janus Henderson (JHG)’s Seth Meyer noting that a Democratic House victory would restore divided government rather than represent an unusual political arrangement. The outcome remains unresolved.

Meanwhile, the debate over AI spending continues to dominate. The Nasdaq-100’s October decline reflected growing concerns that huge investments in artificial intelligence may not generate sufficient returns, especially as borrowing costs rise. Today’s early recovery appears to be a tentative improvement in sentiment rather than a resolution of those questions.

UBS Global Wealth Management (UBS) strategist Kiran Ganesh told Reuters that volatility is likely to persist through earnings season and that companies could be punished if they fail to meet investors’ demands. “The market is in a show-me phase,” Ganesh said.

Telecom Sector in Play

In separate developments, AT&T (T), Verizon (VZ) and T-Mobile (TMUS) were each down more than 2% premarket, while EchoStar (ECHO) gained 4.9% following a report of talks between SpaceX (SPCX) and EchoStar concerning Boost Mobile or network access. The talks were reported by people familiar with the matter, who cautioned that a deal is not guaranteed. A spokesperson for EchoStar declined to comment. SpaceX did not immediately respond to a request for comment.

Outlook

In the near term, earnings, the election result and oil market developments are the principal catalysts. Over the longer term, the key issue is whether AI-related spending generates sufficient earnings and cash flow to justify valuations and financing costs. Stronger evidence of returns would support a recovery; disappointing monetization or more expensive borrowing would reinforce the concerns behind October’s sell-off.

Correction: An earlier version of this article misstated the premarket move in Nasdaq-100 futures. It was up 0.62%, not 1.00%.