After a wave of selling in technology shares, the market is seeking breathing room, with this week's earnings from tech giants set to be a key test. Oil prices pulled back from a five-month high, while safe-haven demand supported US Treasuries.
In Asia-Pacific equities, the MSCI Asia-Pacific index erased early losses and closed roughly flat. South Korea's Seoul Composite ended up 1.8%, Japan's Nikkei 225 closed down 0.6%, and the Topix edged up 0.04%. European stock index futures slipped slightly, and large-scale protests in France over the weekend weighed on the euro against most G10 currencies. Bitcoin rose more than 2%, breaking above $82,500.
Nasdaq 100 futures rose 1.3% and S&P 500 futures gained 0.8%, after both indices suffered sharp selloffs last week. During last week's decline, the closely watched semiconductor index recorded its longest losing streak since 2008, while the volatility index posted its biggest weekly gain since June.
This week, earnings from US tech giants including Tesla and Meta will be released one after another, and the market views them as important barometers for the outlook of AI trades. Kyle Rodda, a senior analyst at Capital.com in Melbourne, said the market is currently in a "classic period of heightened uncertainty." "Multiple factors are colliding at once: AI earnings are imminent, the direction of interest rates remains unclear, and the midterm elections are only weeks away."
South Korea's Seoul Composite ended up 1.8%, Japan's Nikkei 225 closed down 0.6%, and the Topix edged up 0.04%.
Nasdaq 100 futures rose 1.3% and S&P 500 futures gained 0.8%.
The 10-year US Treasury yield fell 1 basis point to 5.06%.
Japan's 10-year government bond yield dropped 2.5 basis points to 2.905%.
The yen was little changed at 158.07 per dollar.
Spot gold rose 0.4% to $4,180 per ounce.
Spot silver rose as much as 1.5% intraday to $57.8 per ounce.
Brent crude fell about 1.8% on Monday to $107.85 per barrel, retreating from a five-month high.
AI Earnings Week Arrives, Market Seeks Direction
This week, earnings from major US technology companies will land in quick succession, directly testing investors' confidence in AI trades. Netflix will be first to report on Tuesday, with Tesla, Meta and IBM following on Wednesday.
According to Bloomberg, several strategists believe the direction of this week's earnings is crucial. Mark Cranfield, a Bloomberg MLive strategist, said, "Investor sentiment is cautious, the geopolitical situation remains fluid, and this is also a big earnings week, including Meta—the new benchmark for the AI theme. However, dip buyers may view the recent deep correction in chip stocks as an entry window."
Marc Jocum, a senior investment strategist at Global X Management, noted, "Ultimately, earnings will test whether last week's AI stock selloff was an overreaction or a warning sign, and investors are closely watching for any opportunity to reposition for long-term AI trades. The earnings results could determine the direction of the market's next rebound."
Chip Stocks Plunge, Nvidia CEO Steps In to Reassure
Last week's sharp pullback in chip stocks triggered widespread doubts about the sustainability of AI trades, with cloud service provider CoreWeave Inc. hit particularly hard—Nvidia is one of its largest shareholders.
Nvidia Chief Executive Jensen Huang expressed optimism about the decline late last week, saying "this too shall pass," and encouraged investors to take a long-term view and focus on the long-term value of the related technology rather than short-term reporting fluctuations.
Yugo Tsuboi, chief strategist at Daiwa Securities, said, "Given the rapid growth in capital expenditure in 2026, the market is especially prone to 'emotional reactions' when credit concerns arise. But funds are unlikely to withdraw from the stock market entirely; they are more likely to shift toward more stable sectors of the market."
Oil Retreats from Highs, Safe-Haven Assets Strengthen
Brent crude fell about 1.8% on Monday to $107.85 per barrel, retreating from a five-month high. Traders weighed escalating conflict in the Middle East against regional supply remaining broadly at pre-war levels, pressuring oil prices. Spot silver rose as much as 1.5% intraday to $57.8 per ounce.
In US Treasuries, concerns last week about the direction of Federal Reserve policy drove the 10-year Treasury yield down about 17 basis points for the week; on Monday, the yield fell another 1 basis point to 5.06%. US Treasuries once again showed their traditional appeal as a destination for safe-haven funds, but that could also leave many investors who bet on continued declines in Treasuries caught offside.
Gold strengthened in tandem, with spot gold rising 0.4% to $4,180 per ounce. According to Bloomberg, earlier comments on Friday by Federal Reserve Chairman Kevin Warsh led the market to lower expectations for a rate hike this month, boosting gold's opening trend.
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