U.S. stock futures slipped on Monday, Oct. 5, as technology shares eased after Friday’s record highs. The dollar strengthened as investors sought safety amid concerns over France’s debt and elevated government borrowing costs. 

Meanwhile, takeover agreements lifted PTC and RXO shares, while traders awaited U.S. services data and assessed the outlook for Federal Reserve interest rates.

U.S. Stock Futures Turn Lower Before the Open

Dow futures fell 101 points, or 0.2%, while S&P 500 futures declined 14.25 points, or 0.18%, in a premarket update. Nasdaq 100 futures dropped 78.25 points, or 0.25%. Earlier, at 8:13 a.m. ET, Dow futures had gained 0.07% and S&P 500 futures had edged up 0.02%, while Nasdaq futures were down 0.11%.

Chip shares contributed to the weakness. Intel shares fell more than 4%, while Micron Technology shares slipped 0.3% in a subsequent update. Nvidia shares gained about 0.5% after reaching a record on Friday. 

The previous session’s rally followed weaker-than-expected employment data, which reduced expectations for an October rate increase and helped lift the Nasdaq to fresh highs.

Dollar Gains as Euro Falls on French Debt Concerns

The dollar approached an almost 18-month peak against a basket of currencies. Meanwhile, the euro fell as much as 0.8% to below USD 1.12, its lowest level since May 2025, before recovering slightly. The Euro has declined about 1.2% this month. France’s CAC 40 index dropped 1%, while Britain’s FTSE 100 gained 0.2%.

French 10-year government bond yields reached their highest level since 2002 last week. The gap between French and German borrowing costs widened to its largest since 2012. France’s government has proposed €54 billion in savings to reduce its deficit. Spain’s announcement of an early election added to political uncertainty, although Madrid’s IBEX 35 index rose 0.5%.

Fed Pause Expectations Rise Despite High Bond Yields

Traders placed an 80% probability on the Federal Reserve leaving interest rates unchanged this month, according to CME FedWatch. Markets still largely priced in a December increase. The benchmark 10-year U.S. Treasury yield stood at 5.277%, near multiyear highs, amid concerns over government finances, heavy debt issuance and elevated energy costs.

Brent crude traded slightly higher near USD 100 a barrel as concerns persisted over disruptions to Gulf oil infrastructure. G-7 countries agreed Friday to release crude and diesel reserves. 

Gold also advanced, with spot prices gaining 0.4% to USD 4,159.89 an ounce by 11:38 GMT. U.S. gold futures for December delivery rose 0.64% to USD 4,188.70, although dollar strength limited gains.

PTC and RXO Shares Rally Following Acquisition Agreements

PTC shares jumped 35.7% in an earlier premarket update after Schneider Electric agreed to buy the software company. The all-cash transaction values PTC’s equity at about USD 22.6 billion. Separately, RXO shares advanced 24% after C.H. Robinson Worldwide agreed to acquire the transportation broker in a stock-and-cash transaction worth USD 5.8 billion.

Cerebras Systems shares rose 4.4% in the same update after OpenAI chief executive Sam Altman called the chip designer a ‘close partner.’ He said the companies had ‘deep engagement pushing on the frontiers of speed.’

Nvidia shares gained 1.3% on Friday, bringing the company’s market value to just under USD 5.7 trillion. The shares ended seven weeks of sideways trading with their first record close since May.

Services Data and Earnings Reports Draw Investor Attention

Two September surveys of U.S. services activity were due shortly after Monday’s market open. Investors were also preparing for quarterly earnings season. Companies representing roughly 70% of the S&P 500’s market value are scheduled to report by the end of October. Goldman Sachs analysts expect 9% annual earnings growth for the median company in the index.

Outside the U.S., Japan’s Nikkei rose more than 2%, while mainland Chinese markets remained closed for Golden Week. 

Brazil’s real strengthened against the dollar after Flávio Bolsonaro finished ahead of President Luiz Inácio Lula da Silva in Sunday’s first-round presidential vote. Brazilian shares were poised for gains following the result, which set up a runoff between the two candidates.

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