FX.co ★ US Futures Rebound from Friday Plunge

US equities were poised to rebound on Monday after the prior session’s selloff, as investors reassessed the risks of slower spending on artificial intelligence and infrastructure. Futures linked to the S&P 500 were up 0.6%, while Dow Jones Industrial Average futures gained nearly 1%. In contrast, the Nasdaq 100 rose less than 0.5%, held back by a sharp drop in Nvidia.

Broadcom, AMD, and Astera Labs climbed about 3% in premarket trading, recovering part of Friday’s steep losses. Those declines followed the Democratic Party’s takeover of Congress, which sparked speculation that AI firms could face pressure on returns, reinforcing existing worries about a deceleration in the sector’s growth. Applied Materials also added 2% ahead of its earnings report this week.

Nvidia fell more than 5.5% after CEO Jensen Huang admitted to an affair with an alleged Chinese intelligence asset, a revelation that could prompt the Democratic-controlled Congress to further tighten export controls on the company’s chips. CoreWeave slipped 3% in premarket trade ahead of its own earnings this week. The stock remains down 75% from last year’s record high but is still viewed as a key bellwether for concerns over excessive spending on AI-focused cloud computing.