Dow Futures Slip While S&P 500, Nasdaq Futures Climb After AI Rally: GME, IBRX, AMD, PSKY Stocks In Focus

• META soared nearly 12% at close after its Muse AI topped app store charts. 
• AMD jumped into the $1 trillion market cap club, becoming the 14th U.S. company to reach the milestone. 
• Markets are watching for a key summit this week between President Donald Trump and Chinese President Xi Jinping in Washington.

U.S. stock futures traded mixed in the overnight session late Monday amid a rally in artificial intelligence stocks and declining long-dated yields, while traders also looked ahead to a key summit this week between President Donald Trump and Chinese President Xi Jinping in Washington.

Dow futures declined 0.16%, while the S&P 500 gained 0.01%, and the Nasdaq-100 edged 0.31% higher at 10:21 PM EDT.  

On Monday, all three benchmark indexes closed in the green. The Nasdaq Composite led the gains, adding nearly 600 points to close 2.26% higher. The Dow Jones Industrial Average climbed 0.71% at close, while the S&P 500 index edged 1.49% higher, clocking a fresh 52-week high. 

Key US Market Drivers

U.S. markets on Monday gained on surging AI stocks, with Meta Platforms Inc. (META) soaring nearly 12% at close after its Muse AI topped app store charts. Chipmaker Advanced Micro Devices (AMD) jumped into the $1 trillion market cap club, becoming the 14th U.S. company to reach the milestone. AMD shares surged nearly 10% at close amid a rally in the AI space. 

The iShares Semiconductor ETF (SOXX) added nearly 5% on Monday, while the VanEck Semiconductor ETF (SMH) rose about 4%. 

AI optimism has increased despite a spending boom as investment across the hyperscaler ecosystem surges. JPMorgan Chase CEO Jamie Dimon believes it could potentially touch $1 trillion next year. Dimon told CNBC-TV18 on the sidelines of the 11th annual JPMorgan India Conference that a surge in AI spending would boost economic growth while also potentially adding to inflation. 

Meanwhile, long-dated Treasury Yields eased on Monday. The U.S. 10-year Treasury yield slipped from its 5% threshold to 4.951% at the time of writing, while the U.S. 30-year Treasury yield traded at 5.28%.

However, Keith McCullough, CEO at Hedgeye Risk Management, noted in a post on X, “YIELD CURVE: continues to flatten with Peak Cycle US Growth now in the rear-view.”

Markets will now turn their attention to an important summit between the U.S. and China, where the leaders of both countries are expected to discuss tariffs, critical minerals, artificial intelligence, and other economic issues. The U.S.-China trade truce is set to expire in early November.

U.S. Treasury Secretary Scott Bessent is also expected to meet Chinese Vice Premier He Lifeng ahead of the visit.

On the geopolitical front, conflict in the Middle East continues to escalate as Yemeni forces struck Houthi fighters and supply lines near the Bab al-Mandeb Strait and in al-Bayda, while also shooting down a Houthi drone in Taiz. Israeli warplanes carried out multiple strikes across southern Lebanon, including Nabatieh, Bint Jbeil and Marjayoun.

U.S. President Donald Trump said over the weekend that he was “probably open” to meeting Iranian President Masoud Pezeshkian at the UN in New York, while also saying Iran must accept a deal and warning of further escalation.

Oil prices have been declining over the week as hopes for U.S.-Iran diplomacy increased and Saudi supply flows improved. 

At the time of writing, Brent crude futures expiring in November were trading at $101.06 a barrel, while WTI crude futures expiring in October were trading at $96.19 per barrel.

Trending Stocks To Watch 

GameStop Corp. (GME): Shares of the video game retailer popped more than 3% higher in the overnight session late Monday after CEO Ryan Cohen bought 1.15 million shares of the company for about $26.4 million. 

ImmunityBio Inc. (IBRX): Shares of the company drew investor attention after founder Patrick Soon-Shiong teased a potential push into blockchain-based stock trading at Nant, prompting speculation that its shares could eventually be tokenized.

Advanced Micro Devices Inc. (AMD): The chipmaker was on the retail radar after it closed above a $1 trillion market capitalization on Monday, making it the 14th U.S. company to reach the milestone. 

Paramount Skydance Corp. (PSKY): The media and entertainment conglomerate’s shares gained more than 1% in the overnight session after it secured settlements with 12 state attorneys general and the Writers Guild of America, clearing key legal hurdles for its $110 billion Warner Bros. Discovery acquisition.

Other Market Trends 

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) and the Invesco QQQ Trust (QQQ) climbed higher in the overnight session, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) traded lower. 

The iShares 20+ Year Treasury Bond ETF (TLT) was up 0.01% amid ‘neutral’ sentiment. 

Asian markets opened higher on Tuesday. South Korea's KOSPI, Japan’s Nikkei 225, China’s SSE Composite and Australian stocks were all trading in the green at the time of writing. 

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