AI Stocks Rebound as Futures Climb After Sharp Selloff

Key points

• Nasdaq 100 futures gained 1.0% and S&P 500 futures rose 0.5% on Monday, October 19, 2026, reversing recent losses.
• The previous week saw the Nasdaq Composite drop 4.5% and the S&P 500 fall nearly 2%, marking the steepest weekly decline for the S&P since late June.
• Chip stocks were particularly hard hit, with the Philadelphia Semiconductor Index recording its longest losing streak since the 2008 financial crisis.
• CoreWeave, an Nvidia-backed data center operator, lost approximately 25% of its value last week, while Oracle also experienced a sharp decline.
• Investors are focusing on upcoming earnings from major technology companies, including Meta Platforms and Tesla, to assess the health of the AI sector.
• Oil prices declined after President Trump waived sanctions and tariffs on Russia, with Brent crude falling 1.2% to $108.54 per barrel and WTI dipping 0.2% to $101.21 per barrel.

Background

This rebound follows a period of heightened volatility in AI stocks, as noted in our October 18 archive, where the Nasdaq fell over 2% due to concerns about AI debt sustainability. The recent sell-off contrasts with the Nasdaq’s record high achieved on October 5, 2026, despite rising bond yields. The current market stress also follows the SpaceX IPO in late September, which initially calmed index fears but may introduce new dynamics as share unlocks approach.

Why it matters

The rebound in AI stocks is critical for determining whether the recent sell-off was a temporary correction or the beginning of a broader market downturn. The performance of major tech companies in their upcoming earnings reports will likely influence investor confidence and the trajectory of the Nasdaq and S&P 500 in the coming weeks. Additionally, the easing of oil prices due to geopolitical shifts could impact inflation expectations and interest rate policies, further affecting market sentiment.

What to watch

Investors will closely monitor the earnings reports from Meta Platforms and Tesla this week to assess the financial health of the AI sector. The outcome of these reports could determine whether the current rebound in futures translates into sustained gains in the broader market. Additionally, developments in oil prices and geopolitical tensions, particularly regarding the Strait of Hormuz, will continue to influence market volatility.