Key Takeaways:
- Magnificent Seven stocks rose 0.5% to 1.3% in pre-market trading Monday
- Nvidia gained 1% while Tesla, Amazon, Meta and Google each added 1.3%
- Falling oil prices and a pause in US-Iran tensions drove the risk-on move
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Magnificent Seven rally 1% in pre-market as oil prices ease
Tech's biggest stocks climbed in pre-market trading Monday as falling oil prices and a pause in geopolitical tensions drew buyers back to the sector.
The Magnificent Seven tech stocks rose as much as 1.3% in pre-market trading Monday, with Nvidia gaining 1% and Tesla adding 1.3% as falling oil prices and a weekend pause in US-Iran tensions lifted risk appetite.
"The combination of lower oil and no new escalation in the Middle East over the weekend gave traders a reason to step back into tech after last week's choppy tape," said Sarah Lin, equity strategist at Edgen. "The question is whether this holds once the Fed and Big Tech earnings dominate the calendar."
Amazon, Meta Platforms and Google parent Alphabet each rose about 1.3% in early pre-market action, while Microsoft added 0.9% and Apple posted a smaller gain. The move came as Brent crude for September delivery slid 6.4% to roughly $90.60 a barrel and WTI dropped 5.7% to about $84.10, taking pressure off inflation-sensitive parts of the market.
The pre-market rally sets up a critical week for the tech trade. Amazon, Meta, Microsoft and Apple are all scheduled to report quarterly earnings, and the Federal Reserve's two-day policy meeting begins Tuesday. Traders will be watching for clues on whether September could bring a rate cut, as well as whether hyperscaler capital spending can sustain the semiconductor cycle that has driven much of this year's gains.
The S&P 500 and Dow Jones Industrial Average also pointed higher in pre-market trading, with Dow futures rising 452 points, or 0.9%, buoyed by strong earnings from Sherwin-Williams and Coca-Cola. The Nasdaq-100 futures gained 0.2%, reflecting the tech-led advance.
The US 10-year Treasury yield held near 4.15% as traders weighed the oil-driven inflation relief against the upcoming Fed decision. The dollar index edged lower, providing additional support for risk assets.
This article is for informational purposes only and does not constitute investment advice.
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