U.S. equity futures opened mixed on Monday, with the Nasdaq 100 futures dropping 1% while the S&P 500 futures slipped 0.15%. The Dow Jones Industrial Average futures, by contrast, edged up 0.3%.
Recent market backdrop
Last week’s market turbulence was driven largely by an AI‑focused sell‑off that saw the Nasdaq Composite rebound 1.09% to 24,579.42 after a sharp decline, while the broader S&P 500 rose 0.31% to 7,376.86. The Dow, however, fell 237.33 points, or 0.46%, closing at 51,285.73. The rebound was fueled by renewed buying in chip stocks, but investor sentiment remains cautious after stronger‑than‑expected jobs data and political uncertainty following the Democrats’ strong midterm results.
Key concerns shaping the trade
Analysts highlighted several factors that could weigh on the market in the coming days. One is the potential for tighter regulation of data‑center construction, energy usage and development costs, which could dampen the rapid expansion of AI infrastructure. Another is a developing corporate governance issue at Nvidia: the board announced an investigation into CEO Jensen Huang’s relationship with a businesswoman identified by U.S. intelligence as a Chinese spy. Nvidia’s proxy shares fell 2% over the previous 24 hours on the Hyperliquid platform.
Liz Ann Sonders, chief investment strategist at the Schwab Center for Financial Research, told CNBC’s “Fast Money” that both the Nasdaq and Nasdaq‑100 appear oversold after heavy de‑risking by traders. She noted that Thursday marked the biggest day of retail selling since the COVID‑19 pandemic, according to Vanda Research, and that retail participants have not acted as the dip‑buyers they have been in the past. “Retail has not proven to be the dip buyers that they have been in the past,” Sonders said, adding that a net‑selling wave could persist unless retail sentiment shifts.
Upcoming data and earnings
The market’s short‑term focus will turn to a series of AI‑related earnings reports, including CoreWeave, Cisco and Applied Materials, as investors gauge whether the recent sell‑off has more room to run. In addition, macroeconomic data will be closely watched. The consumer price index (CPI) is scheduled for release on Tuesday, followed by the producer price index (PPI) on Friday, both of which could provide clues about the Federal Reserve’s next policy move.
Other corporate releases slated for Monday include earnings from Take‑Two Interactive Software, Occidental Petroleum, KKR, Constellation Energy and Skydance. Traders will also receive September wholesale inventories data at 10 a.m. ET.
Across the Pacific, Asian markets posted gains on Monday, led by Taiwan’s equities. The Taiwan Weighted Index surged 4.94% to close at 41,664.7, the strongest one‑day rise since July 31. The rally was driven by technology giants Taiwan Semiconductor Manufacturing Company and Hon Hai Precision Industry (Foxconn). Chinese inflation data also entered the conversation, with the producer price index hitting a four‑year high of 5.7% and consumer inflation slowing to 0.7%.
Overall, the combination of AI earnings, inflation metrics and lingering regulatory concerns creates a cautious trading environment. Market participants will be watching to see whether retail traders re‑enter as buyers or continue to stay on the sidelines, and how AI‑focused companies navigate both earnings expectations and broader macro pressures.
Norman Pearlstine is the Executive Editor and Co-Founder at News Raise. With over two decades of experience across financial journalism, corporate governance, and market analysis, Norman leads the editorial direction and ensures strict adherence to journalistic accuracy and ethics.
