Chips and AI remain choppy as investors weigh macro signals

Tech is finding some redemption. The iShares Semiconductor ETF, ASOXX, was up 3.2% before the US market opened on Monday, after tumbling 4.1% on Friday.

The Invesco AQQQ Trust, Series 1, AQQQ, was up 1.2% from Friday's close, after falling 2.5% that day and 5.5% over the five sessions through Friday. The State Street SPDR S&P 500 ETF, ASPY, was up 0.5% before the open.

The gain was concentrated in technology futures. At 4:59 a.m. Eastern, Nasdaq-100 futures were up 0.99% and Dow futures were up 0.03%, Reuters reported.

Semiconductors fight back

Barron's reported Friday that ASOXX and the VanEck Semiconductor ETF, ASMH, had each fallen for nine straight sessions through Friday, their longest losing streak since May 18, 2006.

ASMH was up 2.7% before the open.

Reuters said the S&P 500 and the Nasdaq Composite had their biggest weekly drop since late June, as concern grew that higher interest rates could hamper spending on artificial-intelligence infrastructure, particularly among companies that run data centers.

The 10-year Treasury yield was 5.09% at Friday's close, the Treasury Department reported. Reuters put it at 5.085% in early trading.

Oil fell on a Russia waiver

Brent crude was at $108.77 a barrel, down 1% from Friday's settlement. That settlement, $109.86, was the highest since May 19, Reuters reported. WTI crude was at $98.45, down 0.6% from Friday's settlement.

On Friday, US President Donald Trump backtracked when he signed an executive order waiving sanctions and tariffs under the Graham Act, which he signed last month at the urging of lawmakers who want to pressure Moscow over the war in Ukraine. Those measures, including tariffs on Russian goods and penalties on countries buying Russian oil and gas, had been due to take effect on Sunday, Oct. 18. They are waived while a review runs.

Oil slipped because the waiver may lead to more Russian fuel exports, Reuters reported.

The order did not say how long the waiver would last. Secretary of State Marco Rubio said Saturday that Trump had chosen a review of up to 60 days.

"I think the president wants to take the 60-day period of time to sort of analyze what imposing both sanctions and tariffs will mean to the global economy and even to the US economy," Rubio told reporters, Reuters reported.

Trump said Saturday he had not yet announced a final decision. That is the decision that would follow the review.

The Gulf interruption is the larger supply break. Analytics firm Kpler said in a Friday note that Gulf crude flows fell to about 8.5 million barrels a day on a seven-day average last week, from more than 20 million the week before, after attacks on commercial vessels intensified. Iran said another tanker had hit a mine in the Strait of Hormuz.

The United States Oil Fund, BUSO, was down 0.5% before the open after rising 2.8% on Friday and 9.1% over the five sessions through Friday. The State Street Energy Select Sector SPDR ETF, AXLE, was down 0.6% before the open after a 2.5% gain on Friday.

French stocks lead Europe lower

France's CAC 40 was down 1.5%. Reuters said French stocks led the declines in Europe after one of the worst bouts of protest violence in years, set off by rising prices and worsening public services.

Technology companies report this week

Reuters said SpaceX is scheduled to release results Tuesday, Tesla on Wednesday, and Meta Platforms later this week. Those reports will show whether Monday's bounce holds.