Nasdaq 100 futures fell 1% early Monday as traders watched tech shares after last week's volatility. An Nvidia board investigation into CEO Jensen Huang, key inflation data and AI earnings this week keep the focus on the sector.
Nasdaq 100 futures sank 1% early Monday, while S&P 500 futures fell 0.15%. Futures tied to the Dow Jones Industrial Average, however, added 0.3%.
Technology stocks drew the attention after last week's volatility. Nvidia's board of directors is opening an investigation into co-founder and CEO Jensen Huang's relationship with a businesswoman whom U.S. intelligence agencies say is a Chinese spy. Nvidia's Frankfurt-traded shares were more than 6% lower in early European trading.
Friday's rebound follows a brutal AI selloff
Friday's market partially rebounded from Thursday's AI-driven selloff as chip stocks recovered. The Nasdaq Composite bounced 1.09% to 24,579.42, and the S&P 500 rose 0.31% to 7,376.86. The Dow lost 237.33 points, or 0.46%, to settle at 51,285.73.
Liz Ann Sonders, Schwab Center for Financial Research chief investment strategist, noted that the Nasdaq and Nasdaq-100 are oversold, with heavy de-risking by traders. Thursday marked the biggest day of retail selling since the Covid pandemic, according to Vanda Research. Sonders told CNBC's "Fast Money" that "we may not fully be washed out yet".
Inflation data and AI earnings loom
Investors are looking ahead to AI-related earnings this week, and CoreWeave, Cisco and Applied Materials are all on deck. They will also watch the consumer price index on Tuesday and the producer price index on Friday, looking for clues on the Fed's next move.
Markets abroad moved with the tech rebound. Taiwan's Weighted Index closed 4.94% up at 41,664.7, its largest one-day gain since 31 July. In Europe, the Stoxx 600 moved to a 0.4% gain by 8:20 a.m. in London after opening lower.
Source: CNBC
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