Stock futures rose early Monday as a tech rebound attempted to steady markets following a sharp rout in artificial intelligence shares, according to CNBC. Nasdaq 100 futures added 1.16%, S&P 500 futures gained 0.58%, and Dow Jones Industrial Average futures ticked 0.17% higher, or 87 points. The recovery follows a severe weekly decline that left the Nasdaq down 4.5% and the S&P 500 lower by nearly 2%.
Intel and CoreWeave Lead Premarket Gains Amid Debt Scrutiny
Individual chip and cloud infrastructure stocks clawed back some losses during premarket trading. Intel advanced more than 4% after JPMorgan analysts upgraded their rating on the chipmaker. Meanwhile, neocloud mainstay CoreWeave gained 3% in premarket trading after plunging more than 25% last week—its largest one-week drop since November 2025—due to mounting debt concerns, CNBC reported. Corporate bond market investors have started to shun the company, with its credit default swaps reaching distress levels.
An illustration below from the Wall Street Journal of the cause and effect of the ongoing rotation trade in the US stock market.(Please see my post from yesterday about what I call the (1-x) qualification to this rotation trade.)#economy #markets #investors #investing #tech… pic.twitter.com/ukvVuRskYa
Goldman Sachs Notes AI Credit Spreads and Widening Pessimism
Market anxiety intensified after CNBC reported, citing sources, that Anthropic’s third-quarter revenue reached $16.8 billion. Although that figure rose from $11.6 billion in the second quarter, it triggered investor questions regarding the overall pace of growth in the artificial intelligence build-out. Goldman Sachs traders noted Friday that AI credit spreads and hyperscalers specifically are at the widest levels of the year, according to CNBC. The firm added that the last time spreads were nearly this high, the underlying equities were 15% lower.
“The widening across the complex has forced investors to confront what happens as AI spending growth slows,” Goldman Sachs traders wrote, as reported by CNBC. “AI Capex has likely peaked and financing, sustainability, and returns on capital have become the debate rather than the next near term earnings revision.” Traders also recorded the second highest amount of puts traded on Friday since June of this year.
Breadth charts (big improvement for S&P 500 … not so much for NASDAQ and Russell 2000) pic.twitter.com/yS3YDpUsKy
Global Markets React to Energy Disruptions and European Protests
Across the Atlantic, European stock markets slipped into the red, with the Stoxx 600 falling 0.82% on Monday. France’s CAC 40 led regional losses by tumbling 1.35% as nationwide demonstrations over high living costs turned violent over the weekend, CNBC reported. The U.K.’s FTSE 100 dipped 0.94% and the German DAX lost 1.1%. In Asia, South Korea’s Kospi rose 1.76% and Australia’s S&P/ASX 200 added 0.44%, while Japan’s Nikkei 225 closed 0.62% lower and mainland China’s CSI 300 ended flat at 4,174.53.
Traders also monitored oil markets as ship attacks in the Persian Gulf increased and Ukraine and Russia targeted each other’s energy infrastructure. Ukraine struck an oil terminal in St. Petersburg on Sunday, prompting longer-dated oil futures to rise on expectations that disruptions could persist well into 2027, according to CNBC. Brent and WTI crude futures were trading slightly lower on Sunday, backing off after Friday’s run despite tanker attacks near Saudi Arabia and Yemen.
Prediction Markets Assign Low Probabilities to Artificial Intelligence Bubble Bursts
Wall Street faces a heavy slate of earnings reports this week from major companies including Meta Platforms and Tesla, with investors looking to those results for market stability. Prediction markets remain unfazed by the recent turmoil, with Polymarket assigning a 7% probability of an AI bubble burst by December 31, 2026, rising to 16% by June 30, 2027. Those contracts recorded trading volumes of approximately $2.44 million and $26,906 respectively.
Frequently Asked Questions on Market Volatility
How much did the major indexes drop during last week’s rout?
The Nasdaq tumbled 4.5%, while the S&P 500 lost nearly 2% in its biggest weekly decline since late June, according to CNBC.
Last week saw the number of stocks in the S&P 500 above their 20-, 50-, and 200-day MAs all increase again. The breadth expansion of October 2026 continues. pic.twitter.com/Iz3EdxpgPF
What prompted the latest round of investor concern over artificial intelligence?
Investor anxiety grew after CNBC reported that Anthropic’s third-quarter revenue totaled $16.8 billion, which raised flags among investors about the pace of growth with the AI build-out.
What are prediction markets estimating for an AI bubble burst?
Polymarket contracts assigned a 7% probability of an AI bubble burst by December 31, 2026, with the odds increasing to 16% by June 30, 2027.
The S&P 500 fell 1.1% today, its 20th daily decline so far this year with a loss above 1%. This is perfectly normal volatility for the stock market – the average year since 1928 has 29 large declines. Downside risk is the price of admission. Without it, there would be no reward. pic.twitter.com/A2IGb8r8je
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