• The three U.S. benchmark indexes: the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite gained at the close on Monday.
  • Except for Nvidia, the rest of the AI trade recovered at the close, posting gains. 
  • Trump met with Qatar's prime minister, Sheik Mohammed bin Abdulrahman, at the White House in a closed-door meeting on Monday. 

U.S. stock futures traded mixed overnight late Monday after markets recovered following a steep AI selloff last week.

Nvidia Corp. (NVDA) was in focus at the start of the week after the chipmaker's board said it would be launching an independent investigation into CEO Jensen Huang’s alleged relationship with a suspected Chinese spy.

Markets will now be watching for October’s consumer price index and producer price index data this week for cues on the health of the U.S. economy.

As of 11:06 p.m. EST, Dow futures gained 0.33%, while the S&P 500 futures were up 0.01% and Nasdaq-100 futures declined 0.37%.

On Monday, the three U.S. benchmark indexes rallied after a massive selloff last week. The Dow Jones Industrial Average added more than 1,100 points to close 2.15% higher. The S&P 500 and the Nasdaq Composite gained 2.35% and 2.74%, respectively.

Key US Market Drivers

On Monday, markets rallied after a volatile week for stocks, especially artificial intelligence and technology names, which plunged last week as traders grew increasingly concerned about a slowdown in data center buildouts after Democrats posted victories in both chambers of Congress in the midterm elections.

Meanwhile, contentious reports around Nvidia led to a slump in the company’s shares, which closed more than 4% lower on Monday, after CEO Jensen Huang admitted over the weekend to having an affair with a woman who is suspected of being a spy for China’s Ministry of State Security. While the company’s board of directors launched an independent internal investigation, it also expressed confidence in the CEO. A fresh investor lawsuit has been filed against Nvidia as well on Monday.

The rest of the AI trade recovered on Monday, posting gains. The iShares Semiconductor ETF (SOXX) jumped 7.49% at close, while the VanEck Semiconductor ETF (SMH) gained 5%.

Funstrat’s Tom Lee said in an interview with CNBC on Monday that there seemed to be encouraging news for the markets.

“The first is we had a flurry of bad news over the weekend, one involving Nvidia and some about Texas going after Elon Musk's companies. And yet the markets are at those stocks are rallying today. I think that's a good sign that markets are rallying on bad news,” he said.

“But the second is the VIX, the VIX term structure, which is the four-month VIX versus the one-month, inverted last week. It's now normalized today. That's usually a sign of a bottom. So I think that this is more proof that last week was the low,” Lee added.

Ross Gerber, co-founder and CEO at Gerber Kawasaki, also expressed confidence in the markets. In a post on X, Gerber said, “Stocks are way too cheap and this moment won't last long. Economy is strong. Earnings are strong. Consumer is still strong. Higher rates not denting infrastructure investment. Of course no war all TACO. Oil prices down. Inflation dropping now. Trump lost the people so some sanity will return to our government. Market correction in. Was very busy at the end of last week.”

On the geopolitical front, a conclusion on the U.S.-Iran war is yet to arrive, although U.S. President Donald Trump said in an interview with CNBC over the weekend that he is “highly unlikely” to restart a full-fledged war with Iran if there is progress made in the talks on Tehran’s nuclear program and the reopening of the critical Strait of Hormuz.

Trump also met with Qatar's prime minister, Sheik Mohammed bin Abdulrahman, at the White House on Monday in a closed-door meeting.

In a post on Truth Social, Trump said that he had an “excellent conversation” with the Prime Minister of Qatar, which included discussions about Iran. He noted that the Middle Eastern countries Qatar, Saudi Arabia, UAE, Bahrain, Kuwait, and others, have agreed to a “continuation of the Greatest Naval Blockade in History, and the new Operation Iron Gate — Therefore, Land and Sea. All have agreed that Iran cannot have a Nuclear Weapon — That is non-negotiable!”

“Should there be any change with respect to developments in the Middle East, the United States of America is “locked and loaded” and ready to go. At this point, however, that seems to be quite unlikely. Israel, and the entire Middle East, are protected from Iranian danger and threats. We are seeing positive momentum toward an end to this Conflict, and will ensure that America’s interests are at all times protected. At the conclusion of this Military Engagement, the American People, and the World, will be far safer and more secure,” he added.

Oil prices declined at the time of writing. Brent crude futures were trading at $91.63 a barrel, down about 1%, while WTI crude futures traded 1.21% lower at $85.82 per barrel.

Markets are now awaiting October’s consumer price index and producer price index data expected this week.

“We think the slowdown in core CPI will stem from a reversion of shelter prices, primarily owners’ equivalent rents and lodging away from home. Similarly, the stabilization in diesel prices should help to quell price pressures in energy-intensive goods,” Christopher Hodge, chief economist of the U.S. at Natixis CIB Americas, reportedly said in a note, according to CNBC.

Trending Tickers To Watch 

Hims & Hers Health Inc. (HIMS): Shares of the telehealth consultation platform slumped more than 11% at close on Monday and continued to decline overnight after it posted a surprise third-quarter net loss, due to a shift towards branded drugs.

Trade Desk Inc. (TTD): The stock climbed overnight after the company topped Q3 earnings expectations and delivered stronger-than-expected guidance.

Nvidia Corp. (NVDA): The AI darling was on the retail radar amid mounting market concerns over leadership and governance following CEO Huang’s letter over the weekend about an affair with a suspected Chinese spy.

MARA Holdings Inc. (MARA): The company’s shares fell about 0.75% in overnight trading late Monday after it missed Q3 revenue expectations due to weaker Bitcoin prices affecting its mining business.

Other Market Trends 

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) edged higher at the time of writing, while the Invesco QQQ Trust (QQQ) was trading lower.

Meanwhile, the 10-year U.S. Treasury yield was trading at 4.868%, while the 30-year yield was at 5.266%.

The iShares 20+ Year Treasury Bond ETF (TLT) was down 0.09% amid ‘bearish’ sentiment.

Asian markets opened higher on Tuesday. South Korea's KOSPI, Japan’s Nikkei 225, China’s SSE Composite and Australian stocks all edged higher at the time of writing.

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