After the AI Sell-Off, U.S. Stocks Expected to Rebound

Jin10 Data, October 19 — According to the Financial Times, U.S. stocks are expected to open higher on Monday. This follows the largest weekly decline since April last year, when Trump announced tariff policies. During the Asian trading session, Nasdaq 100 futures, dominated by tech stocks, rose 1.3%, while S&P 500 futures climbed 0.8%. Analysts pointed out that after Friday's sell-off triggered by concerns over widening credit spreads for AI-related data center companies, investors are now reassessing market conditions. This easing sentiment has also supported Asian markets. South Korea's KOSPI index, which experienced an 11% drop last week, rose 0.5% on Monday. Prashant Bhayani, Chief Investment Officer for Asia at BNP Paribas, stated: "We are seeing a rebound because there was no substantial escalation in the Iran conflict over the weekend." Bhayani added that after last week's "de-risking" operations, traders are adopting a wait-and-see approach to AI-related trades. Japan's TOPIX index fell nearly 1% during Monday's morning session but recovered in the afternoon, ending the day roughly flat. Meanwhile, the Nikkei 225 index, which is heavily concentrated in tech stocks, dropped 0.7%.