- Markets steadied after a brutal week. S&P 500 futures were up 0.4% and Dow futures 0.7% at 6:50 a.m. London time, with Nasdaq 100 futures little changed, Bloomberg reported, after the S&P 500’s largest weekly loss since April 2025.
- Nvidia news was absorbed. Nasdaq 100 futures fell as much as 1% at the Asian open after Nvidia’s board announced a probe tied to CEO Jensen Huang, then reversed those losses; CNBC reported futures had opened lower Sunday night, with Nasdaq 100 futures down 0.8%.
- Asia rebounded hard. The MSCI Asia Pacific Index rose 1.8% after a 3.9% drop Friday, Taiwan’s Taiex gained 4.9% as authorities announced short-selling curbs and readied a NT$500 billion ($15.2 billion) stabilization fund, and the Nikkei rose 2.3%.
- Rates and inflation are next. The 10-year Treasury yield was little changed at 4.85%, and traders priced an almost 80% chance of a Fed rate hike by year-end ahead of Tuesday’s U.S. inflation data.
What Happened?
Global equities started the week on steadier footing after U.S. dip buyers supported shares on Friday, Bloomberg reported. U.S. futures extended gains despite Nvidia’s board announcing an investigation into whether CEO Jensen Huang was targeted in a foreign espionage plot. At 6:50 a.m. London time, S&P 500 futures were up 0.4%, Dow futures 0.7% and Nasdaq 100 futures little changed. Last week the Nasdaq 100 lost $2.3 trillion in market value on Thursday alone on fears that a Democrat-controlled Congress would crack down on AI. In Asia, the MSCI Asia Pacific Index rose 1.8%, Taiwan’s Taiex jumped 4.9% after rising as much as 6.7% to end a seven-day losing streak, and TSMC and MediaTek gained at least 4%. Brent crude fell 1.8% to $96.56, the dollar weakened against all G-10 peers and bitcoin was little changed near $74,145.
Why It Matters?
The rebound suggests investors are treating the Nvidia probe as company-specific rather than a threat to the AI trade itself. Tim Waterer of KCM Trade said the firmer tone reflects expectations that Democrats may soften campaign rhetoric on AI and data centers, and Lombard Odier’s Homin Lee said Taiwan’s stabilization measures were overpowering the Huang news, which many investors may see as a sideshow to semiconductors’ long-term trajectory. Barclays strategists said the AI trade’s ultimate risk is unresolved but solid growth and a likely extension of the capex cycle make them inclined to buy dollar dips.
What’s Next?
Tuesday’s U.S. CPI report is the main macro test, with traders pricing an almost 80% chance of a Fed hike by year-end. Watch Nvidia’s cash open for any spillover into AI peers, and whether Asia’s stabilization measures hold after last week’s bear markets in Japan and Taiwan.
