Global markets opened to a mixed bag of news as Nasdaq futures posted strong gains, indicating investors are “buying the dip” in the artificial intelligence sector following last week’s significant sell-off. While U.S. futures and some Asian markets saw a rebound, European stocks faced losses driven by French protests and broader economic anxieties. Geopolitical tensions in the Middle East and Eastern Europe continue to influence oil markets, even as China reports robust economic growth and Indonesia grapples with a potential MSCI downgrade.
Stock markets began the week with a cautiously optimistic tone on Monday, as traders, eyeing last week's significant downturn in artificial intelligence-related shares, cautiously re-entered the market. This "buy the dip" mentality saw technology-heavy Nasdaq 100 futures climb 1.32%, while Dow Jones Industrial Average futures ticked up 0.53% (278 points), and S&P 500 futures gained 0.2%.
A sense of stability in oil prices early Sunday also provided a supportive backdrop for equity markets.
Last week had been challenging for investors, with the S&P 500 shedding nearly 2%—its steepest weekly decline since late June—and the Nasdaq plummeting 4.5%, snapping a four-week winning streak. The primary driver of this unease stemmed from growing concerns about the pace and sustainability of the artificial intelligence boom.
Notably, a CNBC report highlighted Anthropic's third-quarter revenue hitting $16.8 billion, a rise from $11.6 billion in the second quarter. While seemingly strong, this growth trajectory reportedly raised questions among investors regarding the overall momentum of the AI infrastructure build-out.
Adding to these anxieties was CoreWeave, a prominent AI-linked neocloud stock that leverages substantial debt to construct data centers for tech giants. The company's shares plunged a staggering 25% last week, marking its largest single-week drop since November 2025. This downturn spilled over into the corporate bond market, where investors began shunning CoreWeave, pushing its credit default swaps to "distress levels."
The alarm bells weren't confined to CoreWeave alone. Goldman Sachs traders observed on Friday that "AI Credit Spreads and hyperscalers specifically are at the widest levels of the year. The last time spreads were nearly this high, the underlying equities were 15% lower." They further elaborated, "The widening across the complex has forced investors to confront what happens as AI spending growth slows. AI Capex has likely peaked and financing, sustainability, and returns on capital have become the debate rather than the next near term earnings revision." The firm noted increasing pessimism, low market breadth, and the second-highest volume of put options traded, signaling heightened bearish sentiment.
Beyond the tech sector, traders remained vigilant regarding oil markets, particularly amidst escalating ship attacks in the Persian Gulf and ongoing energy infrastructure skirmishes between Ukraine and Russia. Ukraine’s recent strike on an oil terminal in St. Petersburg, Russia, on Sunday, underscored these tensions. Longer-dated oil futures have reacted by ratcheting higher, reflecting expectations that disruptions to energy infrastructure could persist well into 2027. Despite these concerns, Brent and WTI crude futures were observed trading slightly lower on Sunday.
The week ahead promises further market catalysts, with a flurry of earnings reports expected from major companies, including Meta Platforms and Tesla. Investors hope these results will provide clarity and help stabilize the broader market.
European Markets Open in the Red, French Stocks Lead Losses
European markets kicked off the week in negative territory, with the pan-European Stoxx 600 index falling 0.55% shortly after the London open. Most regional sectors and major bourses were in the red, particularly travel and leisure stocks, which slumped 1.28%, followed by carmakers and parts suppliers (down 1.27%), and banks (shedding 1.17%). In contrast, oil and gas stocks saw a slight uptick of 0.81%, alongside technology names, which rose 0.61%.
France’s CAC 40 led the declines among regional bourses, sliding 1.18%, reflecting concerns from widespread unrest. Italy’s FTSE MIB dropped 0.76%, Germany’s DAX moved 0.70% lower, and the U.K.’s FTSE 100 was down 0.46%. —Hugh Leask
Euro Lower as France Racked by Mass Protests
The euro registered a 0.1% decline against both the U.S. dollar and the British pound as student protests in France escalated into broader unrest over the cost of living and other socio-economic issues. Year-to-date, the euro has weakened approximately 4.4% against the greenback, with a 0.9% drop this month, as traders continue to anticipate further interest rate hikes by the Federal Reserve amidst persistent inflation concerns.
— Jenni Reid
Stock Markets in Europe Set to Start the Week Lower (Pre-Open)
Prior to Monday’s opening bell, Stoxx 50 futures indicated a 0.31% decline, setting the stage for a negative start across Europe’s main bourses. France’s CAC 40 futures were down 0.46%, leading the continental losses amid reports of nationwide protests turning violent over the weekend. The Italian FTSE MIB was seen 0.44% lower, Germany’s DAX off by 0.22%, and the U.K.’s FTSE 100 down 0.07%.
China’s Third-Quarter Economic Growth Quickens to 4.5%, Beating Estimates
China’s economy expanded by 4.5% year-on-year in the third quarter, surpassing Reuters-polled economists’ expectations of a 4.4% increase. This acceleration, up from a three-year low of 4.3% in the second quarter, was primarily fueled by robust foreign demand for the country’s technological goods. This strong external sector largely mitigated the adverse effects of a deepening property slump and subdued domestic consumer spending. Tianchen Xu, a senior economist at Economist Intelligence Unit, noted that a rebound in September, alongside improved government investment and a record high monthly trade surplus of $133.5 billion, salvaged the performance after a lukewarm July and August. —Anniek Bao
Indonesian Stocks Plunge to Six-Year Low as MSCI Downgrade Fears Mount
Indonesia’s benchmark stock index suffered a significant blow on Monday, plunging over 5% to reach its lowest level in six years. The Jakarta Composite Index’s sharp decline intensified fears of further foreign investor outflows, stemming from concerns over a potential downgrade by MSCI. The index provider recently proposed reclassifying Indonesia from an emerging market to stand-alone status, which could lead to its removal from major global equity benchmarks. MSCI is expected to finalize its decision by June, contingent on Indonesia demonstrating substantial improvements in market governance and transparency. Goldman Sachs warned in a Sunday note that a full removal could trigger approximately $5.6 billion in passive fund outflows, equivalent to 18 days of average daily trading volume for MSCI Indonesia Investable Market Index constituents. —Lee Ying Shan
China’s CXMT Sees Shares Drop Over 6% as Investors Look Past Chipmaker’s Profit Turnaround
Shares of ChangXin Memory Technologies (CXMT), a prominent Chinese chipmaker, fell 6.5% on Monday, despite the company forecasting a dramatic swing to profitability for the first nine months of 2026. In a recent filing, CXMT projected net profit attributable to shareholders to be between 131 billion yuan ($19.58 billion) and 132.5 billion yuan for the January-to-September period, a significant reversal from a net loss of 5.28 billion yuan a year earlier. The company also expects revenue of approximately 265 billion yuan to 270 billion yuan, marking an increase of 232.9 billion yuan to 237.9 billion yuan from the same period last year. —Jenny Lee
Asia-Pacific Markets Mostly in the Red (Initial Report)
Most Asia-Pacific markets opened lower on Monday, with Japanese stocks leading the declines. Japan's Nikkei 225 fell 1.65%, and the Topix was down 1.12%. South Korea’s Kospi was 1.29% lower, with its small-cap Kosdaq Index also dropping 0.93%. In contrast, Australia’s S&P/ASX 200 managed a slight gain of 0.37%. — Lee Ying Shan
EQT's $6.5 Billion Takeover for Australia's Cleanaway Sends Its Shares Surging 20%
Shares of Australia’s Cleanaway Waste Management soared 19.84% on Monday following the announcement that Swedish private equity firm EQT had agreed to acquire the company in a deal valued at approximately 9.3 billion Australian dollars ($6.5 billion USD). Under the terms, EQT will purchase all outstanding shares of Cleanaway for A$3.095 per share in cash, subject to adjustments for any dividends. This offer represents a substantial 32.1% premium to Cleanaway’s closing share price on August 12, the day before initial transaction disclosures. EQT expressed intentions to invest in Cleanaway’s infrastructure to enhance its waste management network, aligning with Australia's evolving needs. Cleanaway’s board has unanimously recommended the deal to shareholders, citing the significant premium and certainty of cash consideration, pending no superior proposals and an independent expert’s favorable conclusion. — Jenny Lee
Asia-Pacific Markets Set to Fall as Middle East Tensions Rise (Pre-Open)
Asia-Pacific markets were bracing for a subdued opening on Monday morning amidst renewed threats from Iran, signaling heightened Middle East tensions. Japan's Nikkei 225 futures pointed to a decline, with its Chicago and Osaka contracts trading lower than the previous close. Australia's S&P/ASX 200, however, showed a modest gain of 0.29% in early trade. The Hong Kong market remained closed for a holiday. A senior Iranian security official, Mohsen Rezaei, warned on Sunday that Tehran had devised a "far more devastating" military response strategy against any new U.S.-Israeli strikes, following reports of multiple attacks on commercial ships near the Arabian Peninsula. — Lee Ying Shan
Oil Slips Even as Geopolitical Tensions Rise Over the Weekend
Despite an escalation of geopolitical tensions over the weekend, including Ukrainian attacks on crude facilities in Russia and further tanker attacks in the Persian Gulf, oil prices saw a slight dip in early Sunday trading. Brent crude slipped 1% to $108.80 per barrel, while U.S. oil prices lost 0.2% to $101.18. St. Petersburg Governor Alexander Beglov reported fires at an oil terminal and depot in the city after a wave of Ukrainian drone strikes. Concurrently, two tankers were attacked off the coast of Saudi Arabia in the Persian Gulf on Friday, as per reports from the United Kingdom Maritime Trade Operations Centre. — Spencer Kimball
Stock Futures Rise in Early Trade (Pre-Open)
Early Monday trade saw stock futures edge higher. Nasdaq-100 futures added 0.4%, while Dow Jones Industrial Average futures ticked up 0.2% (110 points). S&P 500 futures also gained 0.2%. — Fred Imbert
