Dow futures rise 208 points after Nvidia, Microsoft AI news

Dow futures climbed 208 points on Monday after Nvidia and Microsoft announced a new AI chip for laptops and desktops developed through a three-year partnership. S&P 500 and Nasdaq-100 futures each gained about 0.3% in premarket trading while Dow futures were up roughly 0.4%.

Nvidia rose about 1.6% in premarket trading on the product announcement. Microsoft shares gained roughly 2.8% as investors priced in deeper AI integration in personal computers. The companies said the chip targets AI workloads on everyday devices rather than data-center systems.

Some rival chipmakers fell. AMD slipped about 3.4% and Intel dropped roughly 2.9%. Cadence Design Systems jumped 8.2% after introducing an autonomous engineering tool for chip design that uses Nvidia technology. Micron advanced about 5.3% and traded above $1,000 for the first time following a sharp rally in May. Broadcom is due to report quarterly results on Wednesday, which market participants view as an important test for semiconductor sector momentum.

Oil prices moved higher amid increased tensions between the United States and Iran, raising geopolitical risk. Traders flagged that higher energy costs could feed into inflation. At the same time, benchmark bond yields rose, a development investors monitor for its implications for interest-rate policy.

This week’s calendar includes the U.S. jobs report on Friday, several Federal Reserve speeches and the regional Fed Beige Book. Markets were pricing roughly a 70% chance of a 25-basis-point rate increase by year-end. Investors are watching those data and Fed comments for information on inflation and labor-market conditions that could influence yields and market direction.