Nasdaq 100 index futures rose on Monday. Following the sharp decline in stocks related to artificial intelligence last week, tech stocks saw a rebound, which drove up the futures prices.
As of press time, the NASDAQ 100 index futures have risen by 1.3%; the S&P 500 index futures have risen by 0.5%; the Dow Jones Industrial Average futures have fallen by 88 points, a decrease of 0.2%.
In pre-market trading, Intel's shares rose by more than 3%, and analysts at JPMorgan Chase upgraded their rating for this chip company. CoreWeave, the leader in cloud computing power, rose by 6% after Goldman Sachs upgraded its rating. Dragged down by debt issues, the stock tumbled by over 25% last week, recording the largest single-week decline since November 2025. Supermicro Semiconductor (AMD) and Micron Technology also both rose by 3%.
The S&P 500 index fell nearly 2% last week, marking the largest single-week decline since the end of June. The Nasdaq index tumbled 4.5%, ending a four-week consecutive upward trend. The technology sector saw a sharp drop of over 6%, recording its worst single-week performance since April 2025. According to Goldman Sachs data, this sector was the industry with the highest net selling of funds globally last week.
Reports indicate that Anthropic achieved revenue of $16.8 billion in the third quarter, and concerns about the sustainability of AI's market performance have become a focal point. Although this figure is higher than the $11.6 billion in the second quarter, investors have begun to raise red flags regarding the growth rate of AI's industry expansion.
Investors in the corporate bond market have begun to avoid CoreWeave, and the company's credit default swap (CDS) has reached a distressed level.
Goldman Sachs' trading team stated last Friday: "The credit spreads in the AI sector, especially those of large cloud providers, have reached their highest levels of the year. The last time the spreads were close to their current high, the corresponding stock prices were 15% lower."
The widening spread across the entire asset class forces investors to confront one question: what will happen after the growth in AI capital expenditure slows down? AI capital expenditure has most likely peaked; the focus of market discussions is no longer on short-term profit adjustments, but on financing capacity, sustainability, and return on capital, they say. "Pessimistic sentiment continues to rise, and the breadth of the market is weakening; on Friday, the trading volume of put options reached a second-highest level of the year, only behind June this year."
Traders are simultaneously vigilant about the situation in the crude oil market: there has been an increase in attacks on vessels in the Persian Gulf, and Russia and Ukraine have been attacking each other's energy infrastructure. On Sunday, Ukraine attacked a petroleum terminal in St. Petersburg, Russia. Markets expect that the damage to energy infrastructure may continue until 2027, and long-term crude oil futures prices have begun to rise.
However, on Monday, futures prices for Brent crude oil and West Texas Intermediate (WTI) crude oil ($WTI) fell slightly. Brent crude oil dropped by more than 1%, trading around $108 per barrel; WTI also fell slightly, at around $101 per barrel.
This week, large companies such as Meta and Tesla will release their financial reports collectively, and the market is optimistic that these reports will help stabilize the overall market.
In the European market, the Stoxx 600 index fell by 0.82% on Monday, leading to a decline in European stock markets. The French CAC40 index led the losses, dropping by 1.35%. The UK FTSE 100 index fell by 0.94%, and the German DAX index fell by 1.1%.
In the Asian markets, the South Korean Composite Index ( Kospi ) rose by 1.76%; the Australian S&P 200 Index increased by 0.44%; while the Japanese Nikkei 225 Index closed down by 0.62%.
