19/10/2026
US stock futures rebounded from last week’s plunge in chip stocks, easing market pressure slightly ahead of critical earnings releases that could shape the market trajectory. Meanwhile, AI-linked trades are facing mounting headwinds, and crude oil prices retreated.
S&P 500 futures rose 0.8% and Nasdaq 100 futures gained 1.3%, following a selloff on Wall Street last Friday. The closely watched semiconductor index posted its longest losing streak since 2008 last week.
The MSCI Asia Pacific Index fell 0.3%, paring early losses. Mainland China equities traded steady after data showed the country’s economic growth beat estimates in the third quarter, raising the odds of Beijing hitting its annual growth target. Indonesian stocks continued to slide.
Oil prices pulled back from five-month highs as traders weighed renewed escalation in the Middle East against signs that regional supply remained at pre-conflict levels. Global benchmark Brent crude fell 1.8% to around $107.90 a barrel.
European stock futures and French 10-year bond futures dropped amid large-scale protests across France over the weekend. The euro weakened against most G10 currencies.
Major US tech firms including Tesla and Meta Platforms are set to report earnings this week. The results will test investor confidence in AI trades after a string of setbacks across the sector. Some investors warn that accelerating US inflation and turmoil in the AI space will amplify volatility in tech stocks and spill over to broader markets.
Netflix will release earnings on Tuesday, while Tesla, Meta and IBM report on Wednesday.
Investors are bracing for further swings across stocks and bonds amid growing doubts over whether massive investments in large-scale AI infrastructure can deliver sufficient returns. Bond volatility gauges remain elevated, and persistent fuel and food inflation keeps pressure on central banks.
US Treasury bonds are showing early signs of reclaiming their traditional haven status, which could catch investors off guard who bet on a continued bond market rout this year. On Monday, the benchmark 10-year US Treasury yield was little changed at 5.06%.
Gold started the week higher, rising 0.3% to $4180 per ounce, as traders scaled back bets on a Fed rate hike this month following remarks from Fed Chair Kevin Walsh last Friday.
Driven by rising concerns over the outlook for leading AI firms and their potential spillover effects on the broader economy, the US 10-year Treasury yield fell roughly 17 basis points last week, and the Nasdaq 100 tumbled 5.5%.
[Disclaimer] Forex trading involves risk; please invest with caution. This content is for informational purposes and objective analysis only, and does not constitute any investment advice, basis for buying/selling, or guarantee of returns. Investors should make independent decisions based on their own financial situation and risk tolerance, and bear their own investment risks.
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