(Oct 19) : US stock futures rose and oil edged lower as traders prepared for a packed week of corporate earnings and Chinese economic data against a backdrop of heightened geopolitical risks.
Futures on the S&P 500 Index advanced, erasing earlier losses after the underlying gauge fell 1.1% Friday, capping its worst week since June. The VIX Index jumped to a four-month intraday high on Friday as technology shares slumped, while the dollar was mixed against major peers in early trading.
More than 70 S&P 500 companies are due to report this week, including Magnificent Seven members Tesla Inc. and Meta Platforms Inc., putting the durability of the artificial-intelligence trade back in the spotlight. In Asia, a swath of Chinese economic data Monday will offer fresh clues on the health of the world’s second-largest economy.
Brent crude fell 0.7% after climbing Friday, with oil near US$110 a barrel adding to inflation concerns and complicating the outlook for interest rates. The Federal Reserve has entered its communications blackout period ahead of its Oct. 28 policy decision, while geopolitical risks remained elevated as relations between the US and Ukraine deteriorated.
Investors are bracing for further swings across stocks and bonds as questions grow over whether massive spending on AI infrastructure will deliver sufficient returns. A measure of bond volatility also remains elevated, while persistent fuel and food inflation is adding pressure on central banks.
We’re in “a classic period of heightened uncertainty,” said Kyle Rodda, a senior analyst at Capital.com in Melbourne. “Several things are colliding at the same time. AI earnings are coming up, interest rate uncertainty is persistent and the midterms are a few weeks away. For Asia, the impacts will be more acute given that all of these themes are amplified because of exposure to chips, higher yields and energy prices.”
Treasuries, which had been favored as a haven during the technology selloff, came under pressure Friday as oil climbed. Brent rose at the end of last week on doubts over US President Donald Trump’s deal to release more Russian diesel into global markets and supply disruptions stretching from the Strait of Hormuz to the Black Sea.
Ukrainian President Volodymyr Zelenskyy accused Trump of trying to pressure Kyiv into surrendering to Russia, escalating a week-long row with the US president.
“I am in the process of negotiating Peace in the war between Russia and Ukraine, and don’t want to do anything that will drive, foolishly, Russia away from the bargaining table. Great progress is being made,” Trump wrote in a social-media post.
Elsewhere, the euro lagged major peers as protests in several French cities descended into clashes between police and demonstrators, with looting and landmarks set on fire. Demonstrations also took place in Belgium, Italy and Portugal.
Chinese assets will be closely watched after authorities moved last week to shore up the equity market by urging companies and state funds to buy shares and guiding some investors to curb selling. The measures followed a technology-driven slump that sent the CSI 300 Index to its lowest since August 2025.
Monday’s data, including third-quarter gross domestic product, will provide fresh clues on China’s outlook. Economists surveyed by Bloomberg expect growth to rebound slightly, though weak consumption, sluggish private investment and a prolonged property downturn remain drags.
Investors will also look for signs of additional policy support as top financial officials, including People’s Bank of China Governor Pan Gongsheng, speak at the 2026 Financial Street Forum starting Monday. Easing bets have increased, with China’s one-year interest-rate swap falling last week to its lowest since April 2020.
“We expect a continuation of the ‘two-speed economy’ of strong industrial production for exports and weak growth in domestic demand,” Commonwealth Bank of Australia strategists led by Joseph Capurso wrote in a note.
uploaded by Isabelle Francis