Technology Shares Lead a Market Rebound as Investors Watch AI Spending
U.S. stock futures moved higher early Monday as technology shares began to recover from last week’s steep losses. The gains came after investors pulled back from companies tied to artificial intelligence, raising questions about whether the rapid growth in that business can continue.
Futures for the Nasdaq 100 rose 1.16%. S&P 500 futures added 0.58%, while futures for the Dow Jones Industrial Average edged up 0.17%, or 87 points. These early moves point to a possible rebound, but they do not guarantee how stocks will finish the trading day.
Some Technology Shares Bounce Back
Intel shares climbed more than 4% before the market opened. The move followed an upgrade from analysts who now have a more positive view of the chipmaker.
CoreWeave, a company that provides computing services for artificial intelligence work, also rose about 3% in early trading. Its shares had dropped more than 25% the previous week, marking its sharpest weekly decline since November 2025. Investors have grown concerned about the company’s debt.
The early gains followed a painful week for major stock indexes. The S&P 500 fell nearly 2%, its biggest weekly drop since late June. The Nasdaq lost 4.5%, ending a four-week streak of gains.
Investors Question the Pace of AI Growth
Worries about the artificial intelligence trade have grown as investors examine how quickly AI companies are increasing their sales and how much money they need to keep building. Anthropic’s third-quarter revenue was $16.8 billion, up from $11.6 billion in the second quarter. The increase was large, but it also led some investors to question whether growth is keeping pace with expectations.
Another concern is the cost of building the data centers and computer systems that power AI services. These projects require heavy spending. Investors are now looking more closely at whether companies can afford that spending and earn enough from it over time.
Trading in corporate bonds has also pointed to concern about CoreWeave. The cost of protecting against a possible failure to repay the company’s debt has risen to levels linked with serious financial stress.
Market traders have noted that borrowing costs for companies tied to AI and large technology firms are at their widest levels of the year. The last time those costs were nearly as high, the related stocks were about 15% lower.
As spending growth slows, investors are debating whether the money poured into AI can be sustained and whether it will produce strong returns. Traders have also seen signs of greater caution, including weak performance across many stocks and heavy demand for options that can protect against price drops.
Oil Markets Face Supply Risks
Investors are also watching oil prices as attacks on ships in the Persian Gulf increase and Russia and Ukraine continue strikes on energy facilities. Ukraine struck an oil terminal in St. Petersburg on Sunday.
Some oil futures tied to later delivery have risen as traders consider the chance that damage to energy infrastructure could disrupt supplies well into 2027. On Sunday, however, both Brent crude and West Texas Intermediate futures were slightly lower.
Company Results Could Shape the Week
Investors are preparing for earnings results from several large companies, including Meta Platforms and Tesla. Some hope the reports will help steady the market after the recent losses. The results could also offer clues about how businesses are handling economic pressures and whether technology spending remains strong.
Even solid earnings may not settle every concern. Investors are weighing company results against questions about AI costs, debt, and future returns. That means market reactions may depend not only on how much companies earn, but also on what they say about plans for the months ahead.
European Markets Move Lower
Stocks across Europe fell on Monday. The Stoxx 600 index dropped 0.82%, while France’s CAC 40 led the declines with a 1.35% loss. Demonstrations over high living costs turned violent over the weekend, adding to pressure on French shares.
The U.K.’s FTSE 100 slipped 0.94%, and Germany’s DAX fell 1.1%. The declines came as investors on both sides of the Atlantic considered economic risks, company results, and the future cost of the AI build-out.
For U.S. markets, Monday’s early gains offer some relief after a difficult week. But investor confidence remains tied to a few central questions: Can AI companies keep growing quickly, can they manage the cost of expansion, and will that spending eventually pay off?