US Stock Futures Bounce After Chip Rout, Oil Slips: Markets Wrap
(Bloomberg) — US equity-index futures rebounded from last week’s chip rout, offering some respite ahead of key earnings that may set the market’s direction amid mounting pressure on the artificial intelligence trade. Oil fell.
Contracts for the S&P 500 Index climbed 0.5% and those for the Nasdaq 100 advanced 1% following Friday’s selloff on Wall Street. Last week’s losses saw a closely watched semiconductor gauge post its longest run of declines since 2008.
While technology remained a drag, Asian shares pared earlier losses to drop 0.5%. The Kospi Index in South Korea erased an opening decline to rise 0.2%.
Oil retreated from a five-month high, as traders weighed flareups in fighting in the Middle East against signs supply from the region is holding at near pre-war levels. Global crude oil benchmark Brent dropped 1.5% to $108.27 a barrel.
European stock futures and contracts on French 10-year bonds declined amid widespread protests in France during the weekend. The euro weakened against most of its Group-of-10 peers.
Earnings from US technology heavyweights including Tesla Inc. and Meta Platforms Inc. this week will test investor confidence in the AI trade after its recent setbacks. Some investors are betting that accelerating US inflation and tremors across the AI sector will amplify swings in technology shares and spill over into the broader market.
Markets are in “a classic period of heightened uncertainty,” said Kyle Rodda, a senior analyst at Capital.com in Melbourne. “Several things are colliding at the same time. AI earnings are coming up, interest-rate uncertainty is persistent and the midterms are a few weeks away.”
What Bloomberg’s Strategists Say…
“Investors are in a skittish mood amid a fluid geopolitical situation and it is a big week for earnings which includes Meta, the new poster child for AI themes. However, dip buyers may see this period as a window to step in after a deep selloff for chipmakers in recent sessions.”
— Mark Cranfield, MLive Strategist. Click here for the full analysis.
Investors are bracing for further swings across stocks and bonds as questions grow over whether massive spending on AI infrastructure will deliver sufficient returns. A measure of bond volatility also remains elevated, while persistent fuel and food inflation is adding pressure on central banks.
US Treasuries are showing tentative signs of reclaiming their traditional role as a haven — threatening to wrong-foot investors who are heavily positioned for this year’s bond slump to deepen.
As concerns mount across markets over the outlook for leading AI firms and the potential impact on the broader economy, US 10-year yields fell about 17 basis points last week while the Nasdaq 100 Index tumbled 5.5%.
“The market is particularly prone to ‘tantrums’ when credit concerns emerge, given the rapid capex growth we saw in 2026,” said Yugo Tsuboi, chief strategist at Daiwa Securities. “Rather than money leaving the equity market altogether, investors are likely to shift toward safer areas of the market”
Yields on the benchmark 10-year Treasury note was little changed Monday at 5.06%.
Gold opened the week higher as traders pared bets on the Federal Reserve raising interest rates this month after remarks by Chair Kevin Warsh on Friday. Bullion rose 0.3% to $4,175 an ounce.
Chinese assets will be closely watched after authorities moved last week to shore up the equity market by urging companies and state funds to buy shares and guiding some investors to curb selling. The measures followed a slump that sent the CSI 300 Index to its lowest since August 2025.
China will also release economic data Monday, including third-quarter gross domestic product, which will provide fresh clues on the nation’s outlook. Economists surveyed by Bloomberg expect growth to rebound slightly, though weak consumption, sluggish private investment and a prolonged property downturn remain drags.
“We expect a continuation of the ‘two-speed economy’ of strong industrial production for exports and weak growth in domestic demand,” Commonwealth Bank of Australia strategists led by Joseph Capurso wrote in a note.
Corporate News:
Nscale Ltd. is facing opposition to the valuation target it’s pursuing in its initial public offering, according to people familiar with the matter, after a series of market setbacks for artificial intelligence companies. EQT AB has agreed to buy Australia’s Cleanaway Waste Management Ltd. through a unit, in a deal that values the firm at about A$9.3 billion ($6.5 billion). Some of the main moves in markets:
Stocks
S&P 500 futures rose 0.5% as of 10:37 a.m. Tokyo time Hang Seng futures fell 0.2% Nikkei 225 futures (OSE) fell 1.3% Japan’s Topix fell 0.5% Australia’s S&P/ASX 200 was little changed The Shanghai Composite fell 0.2% Euro Stoxx 50 futures fell 0.5% Currencies
The Bloomberg Dollar Spot Index was little changed The euro fell 0.1% to $1.1226 The Japanese yen was little changed at 158.01 per dollar The offshore yuan was little changed at 6.6849 per dollar Cryptocurrencies
Bitcoin rose 1.8% to $82,351.96 Ether rose 3.1% to $2,420.79 Bonds
The yield on 10-year Treasuries was little changed at 5.07% Japan’s 10-year yield declined three basis points to 2.900% Australia’s 10-year yield was little changed at 5.23% Commodities
West Texas Intermediate crude fell 0.6% to $100.83 a barrel Spot gold rose 0.2% to $4,174.13 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Matthew Burgess and Momoka Yokoyama.
©2026 Bloomberg L.P.
