US Stocks Halt Selloff as Oil Prices Retreat: Markets Wrap
(Bloomberg) — US equity futures advanced after a bruising selloff in the artificial intelligence trade, with falling oil prices helping to lift sentiment as the new month gets underway.
Contracts for the Nasdaq 100 rose 0.7%, while those for the S&P 500 climbed 0.4%. Europe’s Stoxx 600 fell 0.2% as Alstom SA plunged after warning over cash flow and margins. Most members of the MSCI Asia Pacific Index posted gains even as the index dropped 0.2%. A slump in Japanese memory maker Kioxia Holdings Corp. after a cautious outlook showed that concerns around AI persist.
A report that says President Donald Trump wants to give diplomacy with Iran more time helped ease pressure on oil prices, with Brent falling more than 3% to below $110 a barrel. Ahead of a week also shaped by the US midterms and a slate of employment data, Treasuries started out little changed. A modest rebound in gold lifted the metal toward $3,900 an ounce. The dollar fell 0.1%.
“The rebound is relatively modest compared with Friday’s selloff, so I wouldn’t yet interpret it as a convincing ‘buy-the-dip’ signal,” said Simon Wiersma, chief investment strategist at ING. “There are still enough uncertainties around AI investment, interest rates and geopolitics to keep investors cautious.”
Friday’s US stock selloff showed investors have less tolerance for tech companies whose core businesses are slowing while AI spending surges. Results from Alphabet Inc. and Amazon.com Inc. fueled concerns that spending on the technology is eroding the businesses financing those investments.
Morgan Stanley’s Mike Wilson says he sees a few “clearing events” ahead for the stock market that have the potential to take it lower temporarily, creating an opportunity for investors to pile back in.
While a number of factors could bring the S&P 500 down about 9% from its last record to 7,100 — primarily the midterms, stress over AI and liquidity constraints — Wilson is bullish on the longer-term trajectory. He expects the benchmark to push toward 8,000 once those events are out of the way and a correction that has been happening under the surface has run its course.
“Recent weeks are not, in our view, the ‘start of the end’ of the AI trade,” noted Barclays Plc strategists including Ajay Rajadhyaksha. “This strikes us as more of a garden variety correction, of the sort we have seen twice before in 2026. In both prior corrections, the power of earnings ultimately blew past market concerns.”
Elsewhere, Chinese stocks rallied following a report that financial regulators will meet with banks and securities firms to discuss measures to support the capital market, signaling authorities’ renewed efforts to halt a slump.
Corporate Highlights:
Alphabet Inc. is offering euro bonds for the second time this year, in a test of investor demand after stress in technology debt pushed borrowing spreads wider across the sector in recent weeks. Alstom SA shares plunged after the French train maker cut its full-year guidance and announced an overhaul as delays in key German projects triggered penalties and hurt margins. Some of the main moves in markets:
Stocks
The Stoxx Europe 600 fell 0.2% as of 8:26 a.m. London time S&P 500 futures rose 0.3% Nasdaq 100 futures rose 0.7% Futures on the Dow Jones Industrial Average rose 0.2% The MSCI Asia Pacific Index fell 0.2% The MSCI Emerging Markets Index rose 0.4% Currencies
The Bloomberg Dollar Spot Index fell 0.1% The euro rose 0.4% to $1.1202 The Japanese yen was little changed at 157.67 per dollar The offshore yuan rose 0.1% to 6.6435 per dollar The British pound rose 0.2% to $1.3418 Cryptocurrencies
Bitcoin rose 0.3% to $78,018.71 Ether rose 1.1% to $2,285.86 Bonds
The yield on 10-year Treasuries was little changed at 4.92% Germany’s 10-year yield was little changed at 3.33% Britain’s 10-year yield declined three basis points to 5.26% Commodities
Brent crude fell 3.3% to $109.64 a barrel Spot gold rose 0.4% to $3,891.92 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Nicholas Reynolds and Jan-Patrick Barnert.
©2026 Bloomberg L.P.
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