Global equities began the week on firmer footing as evidence of strong artificial intelligence demand renewed investor interest in technology stocks. Nasdaq futures climbed nearly 1%, while S&P 500 futures gained 0.6%. Semiconductor shares led the move, with Intel rising 5.4% in premarket trading and Micron and AMD each gaining about 2%.

Fresh evidence from South Korea reinforced the AI investment narrative. The country’s exports during the first 20 days of the month reached a record high, supported by surging semiconductor demand. For investors, the data provides another indication that spending tied to AI infrastructure and advanced computing remains an important source of global technology momentum.

Oil Retreats as Supply Concerns Ease

The decline in oil prices provided another source of relief for financial markets. Brent crude fell about 2% to $101.70 a barrel, moving closer to the $100 level after prices had exceeded $109 last week.

Saudi Arabia’s exports have also shown signs of recovery. Data indicated that shipments had risen to just over 4 million barrels per day in September after falling to 2.4 million barrels per day in August, their lowest level since at least 2013. Reports that producers were seeking to restart some flows through the country’s main east-to-west pipeline added to expectations that additional supply could return.

However, the improvement remains fragile. Ongoing threats involving Iran and the United States, alongside attacks affecting Saudi Arabia, continue to create substantial uncertainty around energy infrastructure and future supply. Estimates that global oil and refined-product inventories could be depleted within five to 10 weeks, compared with 15 to 20 weeks just two weeks earlier, underline the potential for renewed price pressure.

Bond Markets Find Relief After Heavy Selling

Lower oil prices also helped government bonds recover from a difficult period. Bond markets had suffered six consecutive weekly declines as higher inflation expectations and expectations for additional interest-rate increases pushed yields higher. The average 10-year yield across the Group of Seven economies had reached around 4.2%, its highest level since 2008.

European government bonds led Monday’s recovery. German 10-year yields declined five basis points to 3.472%, while French 10-year yields fell 10 basis points to 4.469%. The move reversed most of the previous session’s increase and reflected the immediate relief created by the decline in energy prices.

Interest Rates Remain a Major Market Risk

Despite the improved tone, investors remain focused on the possibility of further monetary tightening. Following the Federal Reserve’s latest guidance, futures markets were pricing a 56% probability of another U.S. rate increase in October, while an additional move by the end of the year was viewed as highly likely by market participants.

The combination of elevated oil prices, persistent inflation and concerns about government finances therefore remains central to the outlook for bonds and equities. Currency markets were also cautious, with the dollar slightly weaker against the yen at 157.1 as investors monitored the possibility of Japanese authorities intervening in foreign-exchange markets.

What Investors May Watch Next

The global market rebound now depends on whether two competing forces can remain favorable: resilient AI-driven technology demand and a sustained retreat in energy prices. Strong semiconductor exports could continue supporting technology shares, while lower oil prices could ease pressure on inflation and bond yields. However, renewed disruptions to Gulf supply or stronger expectations for interest-rate increases could quickly reverse the improvement in market sentiment.