- Stocks rebound as falling oil prices ease pressure on bonds while investors prepare for the Trump-Xi meeting and assess the Federal Reserve’s latest rate hike
US stock futures moved higher Monday as oil prices pulled back and Treasury yields eased, giving investors some relief after a difficult week for major US indexes. Dow Jones Industrial Average futures rose about 450 points, or 0.9%, while S&P 500 futures gained 0.7% and Nasdaq-100 futures climbed 1%, according to CNBC.
The rebound came as US crude prices fell about 3% and Brent crude dropped more than 3% to around $100.50 a barrel. Reuters separately reported that Brent was down 2.6% to $101.20 as investors assessed improving Saudi oil flows and developments in the Middle East.
At the same time, investors are watching this week's expected meeting between US President Donald Trump and Chinese President Xi Jinping, as well as the Federal Reserve's latest shift toward tighter monetary policy.
Why Are US Stocks Rising Today?
The immediate catalyst for Monday's move was a combination of lower oil prices and declining Treasury yields. CNBC reported that the 10-year Treasury yield fell more than 3 basis points to 4.957%, while the 30-year Treasury yield declined to 5.294%.
Lower oil prices can ease concerns about inflation because energy costs feed into transportation, manufacturing and other business expenses. That matters particularly for investors after the Federal Reserve raised interest rates last week for the first time in three years. Reuters reported that the retreat in oil prices also helped revive the global bond market after six consecutive weeks of losses. European government bonds led Monday's gains.
The improvement remains sensitive to developments in energy markets, however. Brent crude remains above $100 a barrel, while geopolitical disruptions continue to affect global oil flows.
What Is Happening With Oil Prices?
Oil prices have become one of the most important variables for financial markets in recent weeks. Brent crude rose above $109 a barrel last week before retreating Monday. Reuters said the decline came as traders assessed reports of recovering Saudi exports and potentially stronger oil flows from the Gulf.
Kpler data cited by Reuters showed Saudi oil exports had recovered to just above 4 million barrels per day in September, compared with 2.4 million barrels per day in August. JPMorgan analysts also said oil flows had remained stronger than expected despite recent disruptions. CNBC reported that total flows averaged 17.1 million barrels per day over the previous 10 days, about 6.1 million barrels per day below the 2025 average. That combination has given markets some relief, although supply risks have not disappeared.
Reuters reported that Commonwealth Bank commodities strategist Vivek Dhar estimated global oil and refined-product inventories could face depletion within five to 10 weeks under the current conditions, compared with an earlier estimate of 15 to 20 weeks.
Why Does the Federal Reserve Matter for Stocks?
The Federal Reserve remains central to the market outlook because inflation and interest rates influence borrowing costs, corporate valuations, and investor demand for riskier assets. The Fed raised its benchmark interest-rate target last week for the first time in three years. The move came as energy prices and other inflation pressures remained elevated.
Higher oil prices can make the Fed's inflation fight more difficult. Yardeni Research President Ed Yardeni said persistent energy costs could increase the risk of additional inflation effects, according to CNBC. Reuters reported that financial markets were pricing in a significant chance of another Federal Reserve rate increase before year-end, while government bond yields remained elevated globally.
Chicago Fed President Austan Goolsbee also said Monday that stronger underlying demand could require the central bank to respond with higher rates if inflation proves more persistent than previously expected. For stocks, the key issue is whether inflation and energy costs stabilize enough to reduce pressure on interest rates.
What Is the Trump-Xi Meeting About?
Investors are also looking toward a planned meeting between Trump and Xi this week. China's Foreign Ministry confirmed that Xi will visit the US from Sept. 23 through Sept. 25, with discussions expected to cover US-China relations and broader global issues.
Reuters reported that Trump and Xi are expected to meet at the White House on Thursday, with investors watching for signs that the existing US-China trade truce can be extended. Trade, tariffs, artificial intelligence and critical minerals are among the issues being discussed ahead of the meeting. Treasury Secretary Scott Bessent also met with Chinese Vice Premier He Lifeng before the leaders' meeting.
The outcome could matter for companies with significant exposure to international trade, technology supply chains and Chinese demand.
Why Are AI Stocks Rising?
Technology shares were among the strongest performers in premarket trading. Intel Corp. (NASDAQ: INTC) gained more than 5%, while Dell Technologies Inc. (NYSE: DELL) and Advanced Micro Devices Inc. (NASDAQ: AMD) rose more than 2% and 3%, respectively, according to CNBC.
Reuters similarly reported that Nasdaq futures climbed 1.1%, with Intel up 5.2%, AMD gaining 2.4%, and Super Micro Computer Inc. (NASDAQ: SMCI) rising 3% in premarket trading. Strong demand for AI infrastructure and semiconductors has become an important market theme.
Reuters said South Korean exports during the first 20 days of September reached a record level, helped by strong chip demand. The strength in AI-related shares provides a counterweight to concerns about higher interest rates and geopolitical risks.
What Happened to the Stock Market Last Week?
Monday's gains followed a mostly weaker week for Wall Street. The Dow fell 1.7% last week, marking its worst weekly performance since March. The S&P 500 slipped about 0.1%, while the technology-heavy Nasdaq Composite gained 0.7%.
The previous week's weakness came as investors responded to higher oil prices, rising bond yields and the Federal Reserve's rate decision. The change in oil prices on Monday therefore offered some relief, particularly for investors concerned that an extended energy shock could keep inflation elevated and force central banks to maintain tighter monetary policy.
What Other Stocks Are Moving?
Several individual companies were making significant moves before the opening bell. Ciena Corp. (NYSE: CIEN) rose more than 6% after Evercore ISI upgraded the networking-equipment company and raised its price target. The firm cited demand tied to AI infrastructure and Ciena's optical networking business.
Accenture plc (NYSE: ACN) gained more than 6% after announcing a partnership with Anthropic to evaluate AI models, according to CNBC. Coinbase Global Inc. (NASDAQ: COIN) gained more than 4% as Bitcoin climbed above $85,000. Bitcoin reached an intraday high of $85,229.44, its highest level since January, according to CNBC.
Meanwhile, Novo Nordisk A/S (NYSE: NVO) fell as much as 7% after the Danish drugmaker outlined new growth targets for its obesity-drug pipeline.