Nasdaq-100 futures rose on Sunday night after a rout in AI-linked shares last week. Worries about AI financing, credit markets and oil kept traders cautious.
Nasdaq-100 futures added 0.4% on Sunday night as traders cautiously dipped a toe back in after last week's rout in shares linked to the artificial intelligence trend. Dow Jones Industrial Average futures ticked 0.2% higher, or 110 points, while S&P 500 futures also gained 0.2%.
Stable oil prices early Sunday lent the equity market some support. The rebound follows a rough week, though.
Nasdaq snaps a four-week winning streak
The S&P 500 lost nearly 2% last week, its biggest weekly decline since late June. The Nasdaq tumbled 4.5%, ending a four-week winning streak.
Concerns about the health of the AI trade took center stage after CNBC reported, citing sources, that Anthropic's third-quarter revenue totaled $16.8 billion. That is up from $11.6 billion in the second quarter, but it raised flags among investors about the pace of growth with the AI build-out.
CoreWeave and credit spreads fuel the AI worries
Neocloud stock CoreWeave, which uses large amounts of debt to build data centers it rents out to tech companies, was at the center of those fears. The stock plummeted 25% last week, its largest one-week drop since November 2025. Meanwhile, the company's credit default swaps are reaching distress levels as corporate bond investors start to shun it.
The credit market concerns reach beyond CoreWeave. According to Goldman Sachs traders on Friday: "AI Credit Spreads and hyperscalers specifically are at the widest levels of the year." They added that the second highest amount of puts was traded on Friday, right behind June of this year.
Oil and earnings stay in focus
Traders also watched oil, as ship attacks in the Persian Gulf picked up and Ukraine and Russia traded attacks on energy infrastructure. Brent crude slipped 1% to $108.80 per barrel, and U.S. oil lost 0.2% to $101.18.
Earnings from major companies such as Meta Platforms and Tesla arrive this week, with optimism that the results will stabilize the market.
Source: CNBC
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