Nasdaq Futures Rebound 1% After AI Sell-Off, Signaling Market Correction

The Nasdaq 100 futures rebounded by 1% on Monday, marking a partial recovery after a steep weekly decline—the largest since Trump’s ‘liberation day’ sanctions announcement in April 2025. The correction underscores growing investor skepticism about the sustainability of AI-driven stock rallies, which have dominated market sentiment for over a year. While the rebound signals some stabilization, it does not yet indicate a broader reversal in the tech sector’s downward trajectory.

Global equity markets opened the week on uneven footing, with Asian indices reflecting persistent volatility in technology stocks. South Korea’s Kospi index recovered slightly after a sharp fall the prior week, while oil prices dropped over 1% following U.S. President Donald Trump’s decision to waive sanctions on Russia’s energy sector—a move that could further destabilize commodity-linked markets. Meanwhile, the Swiss franc strengthened to a three-month high against the euro, as safe-haven demand surged amid ongoing fiscal concerns in France.

In India, benchmark indices opened lower, with the Nifty 50 slipping below 23,100 and the Sensex declining over 100 points. By midday, the Nifty had fallen an additional 283 points (1.22%), while the Sensex dropped nearly 900 points (1.22%), reflecting broader weakness in the equity market. Despite the downturn, a handful of stocks—including Adani Ports, SBI, and Larsen & Toubro—bucked the trend, suggesting selective buying interest amid the broader sell-off.