Daily Fundamental Analysis: US stock futures trade higher despite a decline in Asian markets

US stock futures rebounded today, led by the Nasdaq 100, which rose 1.3%, as investors cautiously returned to AI-related stocks following last week’s selloff.

Concerns about the sustainability of AI investment remain central. The S&P 500 fell nearly 2% last week, while the Nasdaq dropped 4.5%, its biggest weekly decline in months. Slower than expected growth concerns surrounding Anthropic, alongside a 25% weekly plunge in heavily indebted data-center operator CoreWeave, intensified fears about AI financing, credit risks, and whether massive capital spending will generate sufficient returns.

Investors are now looking to earnings from major companies, including Meta and Tesla, for signs that strong corporate results can stabilize markets and restore confidence in the AI trade.

Asia-Pacific markets closed mostly higher, led by South Korea, where the Kospi rose 1.7% and the Kosdaq gained 1.8%. Australia’s ASX 200 advanced 0.4%, while Japan’s Nikkei 225 fell 0.6%.

In the currency market, the euro weakened 0.1% against both the US dollar and British pound, pressured by domestic unrest and expectations of further Fed rate hikes amid persistent US inflation.

Gold struggled to sustain its recovery on Monday, remaining below $4,200 per ounce as a stronger US dollar offset support from falling Treasury yields. The dollar benefited from euro weakness amid escalating civil unrest across Europe, while expectations of a Federal Reserve rate hike in October have largely faded following Kevin Warsh’s cautious remarks, supporting non-yielding gold.

Meanwhile, falling oil prices eased inflation concerns after President Trump waived certain sanctions and tariffs on Russian energy to support Ukraine peace talks, although tensions around the Strait of Hormuz remain a risk. Stronger-than-expected Chinese data, with Q3 GDP growth accelerating to 4.5%, also provided support given China’s importance as the world’s largest gold consumer.