US Futures Rise on Chipmaker Gains; China Signals Rate Shift
US stock futures advanced in early Tuesday trading, extending a rebound led by chipmakers that helped the Nasdaq 100 recover from its worst week since April 2025.
US Markets Rebound on Semiconductor Rally
US stock futures edged higher in early Tuesday trading, continuing a recovery spurred by semiconductor manufacturers. This lifted the Nasdaq 100 from its weakest weekly performance since the tariff disruptions of April 2025. Contracts for the Nasdaq 100 rose 0.2%, following a 1.2% gain in the underlying index. The Philadelphia Semiconductor Index climbed 1.6%, ending an eight-day losing streak. S&P 500 futures also added 0.1%.
Asian Markets Show Less Conviction Ahead of Earnings
The positive momentum appeared less pronounced for Asian equities, with futures for Japan, South Korea, and Australia all indicating a lower open. Hong Kong traders were set to return from a public holiday. The endurance of this equity rebound will be tested this week.
Market participants are watching for corporate earnings from Meta Platforms Inc. and Tesla Inc. These results will offer clarity on whether profit growth can justify current valuations and investment levels. Separately, Nscale Ltd. was reportedly in discussions for a US$45 billion computing agreement with Anthropic PBC.
Broader Pressures and China's Policy Shift
Oil prices remained elevated near multi-month highs, contributing to pressure on bond markets. The 10-year US Treasury yield increased seven basis points to 5.14% on Monday, as the recovery in technology shares reduced demand for safe-haven assets.
Traders also increased their wagers on Federal Reserve interest-rate hikes next year, with markets pricing another quarter-point increase in December. CoreWeave Inc., a key player in AI infrastructure, fell 0.4%, even after Goldman Sachs upgraded its stock to 'buy' due to revenue potential.
Meanwhile, China’s central bank showed its overnight reverse repurchase rate will replace the current seven-day rate as its primary policy benchmark. This move represents another step toward aligning its framework with global central banks.
The US market's reliance on chipmakers for its rebound suggests a selective recovery, which Asian investors should monitor closely given the region's deep integration into global tech supply chains. The less convincing outlook for Asian stocks indicates a divergence that may persist as investors await earnings data.
China’s central bank’s shift to an overnight reverse repurchase rate as its benchmark could lead to lower borrowing costs for Chinese businesses and consumers. This policy adjustment may also facilitate greater alignment with international capital markets, potentially influencing regional capital flows and corporate financing strategies across Asia.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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