Stock Futures Rebound Following Tech Rout As Markets Weigh Artificial Intelligence Spending
Stock futures rebounded on Sunday night as traders cautiously re-entered the market following a turbulent week dominated by a sharp sell-off in shares linked to the artificial intelligence sector. Nasdaq-100 futures added 0.4%, while Dow Jones Industrial Average futures climbed 0.2%, gaining 110 points. S&P 500 futures also advanced by 0.2%, supported in early trading by stable oil prices.
The modest recovery follows a steep downturn last week that saw the S&P 500 drop nearly 2% in its largest weekly decline since late June. The tech-heavy Nasdaq tumbled 4.5%, breaking a four-week winning streak.
Market anxiety intensified around the financial health and growth trajectory of the artificial intelligence boom following reports that Anthropic’s third-quarter revenue reached $16.8 billion. Although that figure represented an increase from $11.6 billion in the previous quarter, it sparked concerns among investors regarding the overall pace of growth relative to the massive capital investments poured into the AI build-out.
Neocloud stock CoreWeave found itself at the epicenter of these market jitters. The company relies heavily on debt financing to construct data centers that it leases to technology firms. CoreWeave shares plummeted 25% over the course of the week, marking its largest one-week drop since November 2025. Corporate bond market investors have increasingly avoided the company, pushing its credit default swaps into distress territory.
Broader credit markets are also reflecting growing unease across the sector. Goldman Sachs traders reported Friday that AI credit spreads and hyperscalers have widened to their highest levels of the year. Analysts noted that the last time spreads reached comparable heights, underlying equities traded roughly 15% lower.
Market strategists pointed out that the widening spreads have forced investors to evaluate the broader implications of slowing growth in artificial intelligence spending. According to Goldman Sachs, capital expenditure in AI appears to have likely peaked, shifting investor focus toward financing structures, sustainability, and return on capital rather than near-term earnings revisions. Pessimism has risen, market breadth remains low, and trading data from Friday showed the second-highest volume of put options traded so far this year, trailing only a surge recorded in June.
Beyond the technology sector, traders closely monitored geopolitical developments impacting global energy markets. Ship attacks in the Persian Gulf have escalated, while Ukraine and Russia continue to exchange strikes targeting energy infrastructure. Ukraine struck an oil terminal in St. Petersburg, Russia, on Sunday. These ongoing disruptions have driven longer-dated oil futures higher amid expectations that supply chain complications could persist well into 2027. Despite these pressures, Brent and WTI crude futures traded slightly lower on Sunday.
Attention on Wall Street now turns to a heavy slate of upcoming corporate earnings reports. Major firms, including Meta Platforms and Tesla, are scheduled to release financial results this week, with investors looking to those reports to help stabilize market sentiment.
