Stock Market Update

Equity futures point to a mostly higher open this morning as stocks attempt to rebound from last week's tech-led selloff. Semiconductor stocks and other AI infrastructure-related names faced particularly heavy selling pressure amid growing concerns about the industry's reliance on debt to finance its ambitious expansion plans.

This morning, investors are buying into the recent weakness, sending futures tied to the Nasdaq firmly higher. CoreWeave (CRWV 65.09, +3.59, +5.9%), which plummeted 25% last week amid concerns surrounding stressed credit default swaps, is firmly higher this morning, with an upgrade to Buy from Neutral at Goldman helping the cause.

Meanwhile, investors will continue to monitor geopolitical developments in the Middle East after escalating hostilities sent crude oil prices sharply higher last week, adding another layer of uncertainty to the market's outlook. Attention will also turn to the kickoff of mega-cap earnings this week, with Meta Platforms (META) and Tesla (TSLA) scheduled to report. Their results and commentary could provide important insight into AI spending plans and the broader outlook for some of the market's largest companies.

Today's remaining economic calendar:

• 10:00 AM ET: October NAHB Housing Market Index; Briefing.com consensus 31; prior 32

In corporate news:

• Apple (AAPL 342.88, -0.58, -0.2%) iPhone duo demand has been “extraordinary,” according to Bloomberg.
• Cleveland-Cliffs (CLF 13.72, +1.60, +13.20%) topped the third-quarter earnings estimate but missed the revenue consensus. The company expects fourth-quarter adjusted EBITDA to increase sequentially due to higher pricing, partly offset by seasonality and maintenance outages.
• Intel (INTC 93.29, +3.41, +3.8%) was upgraded to Neutral from Underweight at JPMorgan, with a target price of $85.

Reviewing overnight developments:

According to Nikkei, Asian markets finished mixed as better-than-expected Chinese economic data and continued buying in South Korea offset weakness in Japan's AI-linked shares. Hong Kong was closed for Chung Yeung Day.

In news:

• Nikkei reported that Japanese semiconductor and AI-linked names remained under pressure amid concerns about returns on heavy infrastructure spending.
• Nikkei reported that South Korean shares extended Friday's rebound with support from biotechnology, battery, automobile, and semiconductor names.

In economic data:

• China's Q3 GDP 1.2% qtr/qtr (expected 1.1%; prior 0.9%) and 4.5% yr/yr (expected 4.4%; prior 4.3%)
• China's September Industrial Production 5.5% yr/yr (expected 5.4%; prior 5.2%); Retail Sales 1.1% yr/yr (expected 0.5%; prior 0.4%); Fixed Asset Investment -7.2% yr/yr (expected -7.3%; prior -7.2%); Unemployment Rate 5.2% (expected 5.3%; prior 5.3%)
• China's September House Prices -2.8% yr/yr (prior -3.0%)
• New Zealand's September Performance of Services Index 50.9 (prior 51.0); Trade Balance -NZD1.971 bln (expected -NZD775 mln; prior -NZD1.536 bln), with exports of NZD6.47 bln (prior NZD6.48 bln) and imports of NZD8.44 bln (prior NZD8.02 bln)
• Japan's August Tertiary Industry Activity Index -4.10 (prior 0.70)

Equity Markets:

• Japan's Nikkei: -0.6%
• Hong Kong's Hang Seng: closed for holiday
• China's Shanghai Composite: +0.4%
• India's Sensex: -1.2%
• South Korea's Kospi: +1.8%
• Australia's All Ordinaries: +0.4%

European markets are broadly lower, with French equities and government bonds pressured by intensified weekend unrest and concerns about political stability and public finances.

In news:

• Banks, industrial companies, and defense shares are among the weaker groups across the region, while energy names are providing some support in London.
• Investors are also looking ahead to a busy week of European corporate earnings.

In economic data:

• U.K.'s October Rightmove House Price Index +1.0% m/m (prior +0.7%) and -0.1% yr/yr (prior -0.8%)

Equity Markets:

• STOXX Europe 600 : -0.8%
• Germany's DAX : -1.1%
• U.K.'s FTSE 100 : -1.0%
• France's CAC 40 : -1.4%
• Italy's FTSE MIB : -1.5%
• Spain's IBEX 35 : -1.5%