Investing.com - U.S. stock futures pointed higher on Monday, suggesting a potential recovery on Wall Street after technology stocks suffered steep losses in October amid growing concerns over the scale of artificial intelligence spending.
Investors are now turning their attention to a fresh batch of corporate earnings, led by Apple's first results under new CEO John Ternus, while developments in the Iran conflict, a major cryptocurrency exchange hack and the U.S. midterm elections are also in focus.
Here are five things to know before markets open:
1. Apple prepares for first earnings call under new CEO
Apple will report earnings on Monday, with investors looking for clues from new CEO John Ternus on whether the company's latest product launches can support growth as rising memory-chip costs threaten profit margins.
Ternus, who took over from Tim Cook in September, is hosting his first earnings call as CEO after overseeing the launch of several new products, including Apple's first foldable iPhone, a smart home hub and its first touchscreen laptops. The devices began shipping during the company's current fiscal first quarter.
Investors will be watching three key areas: Apple's outlook for the crucial holiday quarter, Ternus' comments on artificial intelligence and the revamped Siri, and the impact of higher memory-chip prices on profitability. Analysts expect rising component costs to weigh on profit growth, potentially bringing it to its weakest pace in six quarters.
Apple also reclaimed its position as the world's most valuable publicly traded company on Friday, overtaking Nvidia. Despite a 1.2% decline in its shares, Apple ended the session with a market capitalization of $5.03 trillion. Nvidia's valuation fell to $4.93 trillion after its stock dropped 4.2%, amid renewed investor concerns about aggressive AI spending.
Apple's results could offer an important test of whether its product launches and AI strategy can sustain growth while input costs rise. Its performance may also provide clues about investor appetite for large technology companies, particularly as markets reassess the returns expected from heavy AI investment.
2. Binance sees $3.64 billion in withdrawals after security breach
Binance customers withdrew $3.64 billion, or around 2.1% of the exchange's assets, as the world's largest cryptocurrency exchange resumed services following a security breach linked to North Korea. The incident reportedly resulted in $6.3 billion being stolen from the platform last week.
Binance said withdrawals were stabilising after an initial surge and that deposit volumes had remained substantial, seeking to reassure customers about the platform's financial position.
The exchange reported $171 billion in total assets under management as of October 28 and has around 335 million registered users globally. The scale of the reported theft has raised concerns about the security of cryptocurrency platforms and the potential for further disruption across the sector.
Bitcoin recovered slightly over the weekend after touching a six-week low on Friday, trading above $78,000 on Monday. Ether also rebounded modestly to around $2,287 after falling to a two-month low.
The withdrawals highlight how quickly confidence can be tested in the cryptocurrency market following a major security incident. Although Binance has said flows are stabilising, sustained withdrawals or further uncertainty could weigh on broader digital-asset sentiment.
3. U.S. stock futures rebound as investors look to earnings
U.S. stock index futures rose early Monday, pointing to a possible recovery after October's technology-led selloff, as investors looked ahead to another busy week of corporate earnings.
By 03:50 ET, S&P 500 futures had risen 0.46% to 7,614 points, Nasdaq 100 futures had gained 0.75% to 28,753 points, and Dow Jones futures were up 0.28% at 52,075 points.
Technology shares also rebounded across Asian markets, helping support the broader recovery in futures.
Investors will now be watching earnings from major companies, including Apple on Monday and Advanced Micro Devices on Tuesday. Palantir Technologies and Berkshire Hathaway are also scheduled to report on Monday.
4. Oil falls more than 3% as hopes for Iran diplomacy grow
Oil prices fell more than 3% on Monday as hopes for progress in diplomatic efforts to end the U.S.-Israeli war with Iran eased immediate concerns about further supply disruptions.
Brent crude futures for January delivery fell 3.3% to $109.70 a barrel by 00:27 ET (05:27 GMT), while U.S. West Texas Intermediate crude futures declined 3.5% to $100.48 a barrel.
The decline followed strong gains in recent sessions, with the absence of a major escalation over the weekend encouraging some investors to take profits. Both benchmarks had ended October nearly 15% higher.
U.S. President Donald Trump reportedly told Israeli Prime Minister Benjamin Netanyahu during a phone call on Saturday that he preferred to give diplomacy more time before deciding whether to resume military action, Axios reported. Netanyahu reportedly pushed for U.S. strikes to resume shortly after the midterm elections.
Lower oil prices could ease some inflationary pressure and reduce concerns about higher energy costs for businesses and consumers. However, crude remains elevated after October's rally, leaving markets sensitive to any setback in diplomatic efforts or renewed disruption to supplies.
5. U.S. midterm elections could shape Trump's policy agenda
The U.S. midterm elections, scheduled for Tuesday, are another major focus for investors, with the results expected to influence the legislative direction of President Donald Trump's second term.
All 435 seats in the House of Representatives and 35 Senate seats are up for election. Trump and Republicans are heading into the vote against a challenging backdrop, with voter discontent over high gasoline prices and the prolonged war with Iran weighing on the political climate.
A recent Reuters/Ipsos poll put Trump's approval rating at 31%, its lowest level in the survey. A Democratic majority in both chambers of Congress could make it more difficult for the administration to advance its policy agenda. A divided Congress, meanwhile, could push the White House to rely more heavily on executive measures.
The election outcome could affect the outlook for fiscal policy, regulation, trade and other areas important to businesses and financial markets. A change in congressional control could also complicate the administration's policy plans, potentially adding to uncertainty for investors during the remainder of Trump's term.
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