NEW YORK, July 28, 2026, 08:01 EDT — U.S. premarket trade saw the Nasdaq-100 reverse by 1.9 points, with apprehension surrounding investment in the artificial intelligence sector surpassing any uplift from easing oil prices.
- Nasdaq-100 futures slipped 1.04% at 7:04 ET, while Dow futures gained 0.5%.
- The Nasdaq-100 indicator on Monday shifted 1.93 percentage points between the initial futures and the cash market close.
- The Fed meets on Wednesday, with major Big Tech earnings set for Wednesday and Thursday.
At 7:04 ET, Nasdaq-100 futures dropped 1.04%, while Dow futures rose 0.5%. The divergence continued Monday’s shift away from growth stocks with heavy exposure to chips.
Market moves delivered a clearer signal than final index levels. On Monday, a drop in oil prices failed to counteract skepticism over AI expenditure.
| Benchmark | Monday 06:48 ET futures | Monday cash close | Approximate fade |
|---|---|---|---|
| S&P 500 | +1.01% | +0.02% | -0.99 points |
| Nasdaq-100 | +1.61% | -0.32% | -1.93 points |
| Dow | +1.03% | +0.51% | -0.52 points |
Initial figures for Monday came in at 06:48 ET. “Fade” is calculated as the cash close less the corresponding futures reading. This gauge is indicative only and not meant for trading, since futures and cash indices are settled differently. Investing.com
The Nasdaq-100 slipped 1.93 points, close to twice the drop seen in the S&P, and roughly 3.7 times greater than the Dow’s decline.
Nvidia NASDAQ:NVDA dropped 5.0% on Monday after The Journal reported discussions involving about $250 billion in potential OpenAI financing support. Apple NASDAQ:AAPL climbed 1.2%, widening the performance differential to 6.2 points. Apple regained its position as the leading U.S. company by market value.
The Philadelphia chip index fell 2.2%, now standing 21% under its record from June 22. Despite the decline, it is still showing a 63% gain for the year.
Brent crude dropped 8%, trading near $89 per barrel. Shares of Occidental Petroleum NYSE:OXY declined 4.1%, and Exxon Mobil NYSE:XOM slipped 1.4%. This prompted sector rotation rather than a widespread rally.
The pressure increased ahead of Tuesday’s open. Shares of Micron Technology NASDAQ:MU dropped 5.5%. Applied Materials NASDAQ:AMAT declined 4.3%, and Nvidia edged down another 1%.
Cash flow was highlighted by Ipek Ozkardeskaya, senior analyst at Swissquote Group SWX:SQN. She noted that a renewed “dive in their free cash flow levels” could bring issuance worries back to the forefront. Reuters
The pressure was evident last week as the Dow slipped 0.4%, the S&P 500 declined 0.6%, and the Nasdaq retreated 2.0%.
This came after a short-lived chip recovery on July 21. According to The Journal, stocks then broke a three-day streak of declines.
Microsoft NASDAQ:MSFT and Meta Platforms NASDAQ:META are set to release results on Wednesday. Amazon.com NASDAQ:AMZN and Apple are scheduled for Thursday.
Investors are set to focus on capital expenditures, depreciation, and free cash flow. Revenue growth by itself might not be enough to meet expectations.
The Federal Reserve will announce its decision on Wednesday. Early Tuesday, traders saw a 35.8% probability of a quarter-point increase. PCE inflation data for June is due on Thursday.
Risks exist on both sides. If a lasting ceasefire is achieved and inflation eases, growth stocks might rebound. On the other hand, disappointing cash-flow projections or an unexpected rate hike could extend the chip market downturn.
This week, investors will be assessing the strength of company funding in addition to appetite for AI. Firms able to support growth plans without taking on extra debt or issuing new shares could emerge ahead.
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