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Futures up: Dow 0.19%, S&P 500 0.41%, Nasdaq 0.51%
March 16 (Reuters) - U.S. stock index futures rose on Monday with shares of Meta among top gainers after a report said the megacap was prepping for sweeping AI-related layoffs, even as elevated crude prices due to the raging Middle East conflict kept risk-taking in check.
Meta <META.O> gained 3% in premarket trading after a Reuters report said it was planning to shrink 20% or more of its workforce to offset costly artificial intelligence infrastructure bets and prepare for greater efficiency brought about by AI-assisted workers.
The Instagram parent joins similar announcements made by Amazon.com AMZN.O and Block XYZ.N earlier this year.
AI is also expected to stay in the spotlight this week, with chip giant Nvidia's <NVDA.O> annual developer conference scheduled later in the day, and results from Micron MU.O. Electronics giant Taiwan's Foxconn <2317.TW> also issued a strong quarterly revenue forecast.
"If Jensen can show Nvidia has the hardware to lead not just in building AI, but in powering its everyday use, this event could be a key moment in building confidence that Nvidia will remain the defining name in the next leg of the AI race," said Matt Britzman, senior equity analyst at Hargreaves Lansdown, who holds shares in the chip company.
Nvidia gained 1%, while Micron added 4% following a price target hike by brokerage RBC. Tesla <TSLA.O> also gained 1% after CEO Elon Musk said the company's Terafab project to make artificial intelligence chips will launch in seven days.
Keeping investors cautious were crude prices pinned at $100 a barrel, as shipments through the crucial Strait of Hormuz stayed mostly shut and U.S. President Donald Trump's demands for a coalition to secure safe passage seemed to be in vain.
The impact of elevated energy costs is likely to be the main focus of central bank meetings globally this week, with the Federal Reserve also having to consider tariff costs and signs of a weakening jobs market.
Rates are expected to be left unchanged at the end of the Fed's two-day meeting on Wednesday, and traders have pushed back their expectations for an interest rate cut of at least 25 basis points to only after October, according to LSEG-compiled data, from July seen last month.
At 5:10 a.m. ET, Dow E-minis YMcv1 were up 88 points, or 0.19%, and S&P 500 E-minis EScv1 were up 27.25 points, or 0.41%. Nasdaq 100 E-minis NQcv1 were up 124.25 points, or 0.51%.
US EQUITIES HOLD UP BETTER THAN PEERS
Wall Street's main indexes have been fraught with volatility since the war began as traders tried to gauge its repercussions on the economy.
Despite logging declines over the past two weeks, U.S. equities have fared better than global peers, buoyed by a rebound in beaten-down technology stocks and as the country is a net oil exporter.
The CBOE volatility index .VIX slipped 0.9 points to 26.31 on Monday, while futures tracking the rate-sensitive Russell 2000 index RTYcv1 were marginally higher.
On the data front, February industrial production and the New York Fed's manufacturing index are due later in the day.
Elsewhere, top U.S. and Chinese economic officials were due to conclude talks in Paris, with potential areas of agreement in agriculture, critical minerals and managed trade that could be taken up by U.S. President Donald Trump and Chinese President Xi Jinping in Beijing, sources familiar with the discussions said.
Investors were also monitoring moves in currency markets as the Japanese yen JPY= hovered close to 160 per dollar - lowest levels since the last central bank intervention.
Energy stocks including Occidental OXY.N and ConocoPhillips COP.N climbed over 1% each, while travel stocks including Delta DAL.O and Norwegian Cruise NCLH.N were steady.
Crypto stocks such as Strategy MSTR.O added 2.7% as bitcoin BTC=BTSP rallied over 2%.
(Reporting by Johann M Cherian in Bengaluru; Editing by Maju Samuel)
((johann.mcherian@thomsonreuters.com))
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