Stock futures traded slightly higher on Sunday evening as investors watched whether technology shares could extend their recovery following last week’s sharp selloff.
S&P 500 futures gained 0.1%, while Nasdaq 100 futures added 0.3%, according to CNBC. Futures tied to the Dow Jones Industrial Average rose 101 points, or 0.2%, according to the same report. Investing.com noted that futures were mixed overall, with Dow futures up 0.4% to 51,605.0 points.
Markets prepared for a heavy economic calendar featuring inflation readings and major artificial intelligence earnings. The tech sector rebounded partially on Friday from a brutal AI-driven selloff that occurred on Thursday, when the Nasdaq plunged 5.5% and the S&P 500 dropped 4.4%, according to Investing.com.
Global Markets Turn Higher
Asian markets were mostly higher on Monday, led by Taiwanese equities. The Taiwan Weighted Index surged nearly 5% due to a rebound in key stocks such as TSMC and Hon Hai Precision Industry, also known as Foxconn, CNBC reported.
The Nikkei 225 gained 3.25% and the Topix climbed 3.44%, driven by financial and consumer cyclical stocks. South Korea’s benchmark Kospi index rose 1.15%, while Hong Kong’s Hang Seng Index gained 1.03% and mainland China’s CSI 300 index added 0.3%.
% Below All-Time High (@ Nov 5 Correction Low) S&P 500: -6% Nasdaq 100: -15% Nvidia $NVDA: -26% Taiwan Semi $TSM: -28% SK Hynix $SKHY: -39% AMD $AMD: -39% Broadcom $AVGO: -41% Micron $MU: -48% Applied Materials $AMAT: -57% Lam $LRCX: -58% Intel $INTC: -64% Sandisk $SNDK: -66%
Investors in Asia also assessed October inflation data out of China. The producer price index hit its highest level in over four years at 5.7%, while consumer inflation came in slower than expected at 0.7%, CNBC reported. In Australia, the S&P/ASX 200 fell 0.51%.
Nvidia Board Launches Investigation
Nvidia’s board of directors opened an investigation into co-founder and CEO Jensen Huang’s relationship with a businesswoman whom U.S. intelligence agencies say is a Chinese spy, CNBC reported. Investing.com added that Huang apologized to employees after admitting to an affair with businesswoman Alice Huang. A proxy for Nvidia shares fell 2% over a 24-hour period on Hyperliquid.
Broader investor sentiment remained cautious following stronger-than-expected jobs data. Concerns also lingered after Democrats secured strong midterm results, sparking fears that tighter regulations on data center construction, energy use, and development costs could slow the artificial intelligence infrastructure boom, according to CNBC.
Retail Investors Sit Out The Dip
Thursday marked the biggest day of retail selling since the Covid pandemic, according to Vanda Research data cited by CNBC. Retail traders have not been taking advantage of the selloff.
More of the same last week, as most stocks did ok overall, all things considered. Per @DualityResearch, avg stock down just over 1% and 351 beat the S&P 500. Of course, when 37% of the S&P 500 is tech and that crashes, hard not to feel 🤢 afterwards pic.twitter.com/TYrbQdVuix
Sonders suggested that the next short-term focus should center on corporate adjustments to capital expenditure plans and profit margin expectations.
Traders Await Inflation Data to Gauge Federal Reserve Moves
Traders are awaiting the release of key inflation data to gauge the Federal Reserve’s next move. The October consumer price index is scheduled for release on Tuesday, followed by the producer price index on Friday, CNBC reported.
Markets are pricing in a nearly 80% probability of another Federal Reserve rate increase at its December 8–9 meeting, according to CME FedWatch data cited by Investing.com.
On Monday, traders will review September wholesale inventories data at 10 a.m. Eastern Time. Quarterly earnings are scheduled from Take-Two Interactive Software, Occidental Petroleum, KKR, Constellation Energy, and Skydance, alongside reports from AI-related firms including cloud computing provider CoreWeave on Tuesday, and chip equipment maker Applied Materials and networking giant Cisco Systems on Thursday, according to Investing.com.
Market Questions Answered
When is the October consumer price index released?
The October consumer price index is scheduled for release on Tuesday, followed by the producer price index on Friday.
What caused Thursday’s major tech selloff?
The Nasdaq plunged 5.5% on Thursday amid concerns that Democratic midterm victories could lead to tighter regulations on artificial intelligence development and data center construction.
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