Nasdaq futures demonstrated a strong rebound early Monday, signaling a ‘buy the dip’ sentiment in AI-linked stocks following last week’s significant rout, though investor concerns about the AI sector’s growth persist. Meanwhile, European markets anticipate a lower open amid widespread protests in France and a weakening euro, while China’s economy beat expectations with a 4.5% Q3 growth. Geopolitical tensions involving oil infrastructure and fears of an MSCI downgrade for Indonesian stocks continue to shape a volatile global market landscape.
Stock futures saw a significant rebound early Monday as investors cautiously re-entered the market, 'buying the dip' following last week's slump in artificial intelligence-linked shares. This move signals a potential turning point after recent market turbulence.
A trader works at the New York Stock Exchange on July 10, 2026. (Source: NYSE)
Nasdaq 100 futures surged by 1.32%, while Dow Jones Industrial Average futures climbed 0.53%, adding 278 points. S&P 500 futures also gained 0.2%. Stable oil prices, despite escalating geopolitical tensions, provided additional support to the equity market. Last week had seen the S&P 500 drop nearly 2% (its biggest weekly decline since late June) and the Nasdaq tumble 4.5%, breaking a four-week winning streak.
Concerns surrounding the health of the AI trade intensified after reports indicated Anthropic's third-quarter revenue reached $16.8 billion, a rise from $11.6 billion in Q2, yet still raising questions among investors about the sustained pace of AI growth. CoreWeave, a prominent AI-linked company known for using substantial debt to build data centers, experienced a 25% plummet last week, its largest single-week drop since November 2025. This downturn has led to corporate bond investors shunning CoreWeave, with its credit default swaps reaching 'distress levels'. Goldman Sachs traders also highlighted widening AI credit spreads, noting that current levels typically correspond to a 15% lower valuation in underlying equities, suggesting increasing pessimism about AI spending growth and its financial sustainability.
Geopolitical tensions remain a key focus for traders, particularly concerning oil. Ship attacks in the Persian Gulf and reciprocal strikes on energy infrastructure between Ukraine and Russia have pushed longer-dated oil futures higher, anticipating disruptions extending into 2027. Despite these developments, Brent and WTI crude futures were trading slightly lower on Sunday.
Looking ahead, major earnings reports from companies like Meta Platforms and Tesla are expected this week, with hopes that strong results will help stabilize the market.
Euro Lower Amid French Protests
The euro slipped 0.1% against both the U.S. dollar and the British pound as mass student protests in France escalated into widespread unrest over the cost of living and other societal issues. The currency has been under pressure, down 4.4% against the greenback this year, partly due to expectations of further Federal Reserve interest rate hikes in response to sticky inflation.
Euro/U.S. dollar.
European Markets Eye Lower Open
European stock markets are poised for a lower start to the week. Stoxx 50 futures were down 0.31%. France's CAC 40 was set to lead losses with a 0.46% drop, reflecting ongoing nationwide protests. Italy's FTSE MIB was seen 0.44% lower, Germany's DAX off by 0.22%, and the U.K.'s FTSE 100 down 0.07%.
The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, June 29, 2026. (Source: Staff | Reuters)
China's Economy Outperforms Expectations in Q3
China's economic growth accelerated to 4.5% year-on-year in the third quarter, surpassing Reuters' estimates of 4.4%. This robust growth was driven by strong foreign demand for technological goods, despite challenges from a deepening property slump and subdued consumer spending. The recovery in September, aided by improved government investment and a record trade surplus of $133.5 billion, helped offset weaker performance in July and August.
Indonesian Stocks Plunge on MSCI Downgrade Fears
Indonesia's benchmark stock index plunged over 5% on Monday, hitting a six-year low. Intensified fears of a potential MSCI downgrade from emerging market to stand-alone status sparked concerns of significant foreign investor outflows. Goldman Sachs warned of approximately $5.6 billion in passive fund outflows if Indonesia is removed from MSCI's emerging-market indexes, pending a final decision in June based on market governance improvements.
CXMT Shares Drop Despite Profit Turnaround
Shares of ChangXin Memory Technologies (CXMT) fell 6.5% on Monday, even after the chipmaker projected a sharp swing to profitability for the first nine months of 2026. The company expects net profit between 131 billion yuan ($19.58 billion) and 132.5 billion yuan, a significant reversal from a 5.28 billion yuan loss a year prior, on projected revenue of 265 billion to 270 billion yuan.
Asia-Pacific Markets Mostly in the Red
Most Asia-Pacific markets declined on Monday, led by Japanese stocks. The Nikkei 225 lost 1.65%, and the Topix was down 1.12%. South Korea's Kospi fell 1.29%, and the Kosdaq Index dropped 0.93%. Mainland China's CSI 300 slid 0.28%. Australia's S&P/ASX 200, however, bucked the trend with a 0.37% gain. Hong Kong markets were closed for a holiday.
EQT's $6.5 Billion Cleanaway Takeover Boosts Shares
Australia's Cleanaway Waste Management shares soared 19.84% after Swedish private equity firm EQT announced a $6.5 billion agreement to acquire the company. EQT will pay A$3.095 per share, a 32.1% premium to Cleanaway's closing price on August 12. Cleanaway's board unanimously recommended the deal, citing the substantial premium and cash certainty.
Oil Prices Slip Despite Geopolitical Tensions
Oil prices saw a slight decline in early Sunday trading, despite rising geopolitical tensions. Brent crude slipped 1% to $108.80 per barrel, and U.S. oil prices lost 0.2% to $101.18. This occurred even as Ukraine attacked crude facilities in Russia, causing fires in St. Petersburg, and two tankers were attacked off Saudi Arabia in the Persian Gulf.
