US stock index futures attempted a recovery on Monday as investors hunted for bargains following a steep slide in equities last week. Daniela Hathorn said, "even speculation about leadership uncertainty could unsettle investors." While Dow and S&P 500 futures rose, many investors remained selective as they awaited further market clarity.
Nov 9 (Reuters) - US stock index futures attempted a recovery on Monday as investors hunted for bargains following a steep slide in equities last week, while awaiting more clarity on the controversy surrounding Nvidia CEO Jensen Huang.
The gains kick off a pivotal week expected to offer some insight into whether last week's selloff post the midterms went too far or was warranted. But despite the relatively calm start, several concerns were converging under the surface, analysts warned.
Sign up here.
"Given Huang's central role in Nvidia's success and the wider AI investment narrative, even speculation about leadership uncertainty could unsettle investors," said Daniela Hathorn, senior market analyst at Capital.com.
At 5:10 a.m. ET, Dow E-minis were up 376 points, or 0.73%, S&P 500 E-minis rose 29.75 points, or 0.40%, and Nasdaq 100 E-minis added 56.5 points, or 0.21%.
While "bargain hunting" was driving a recovery, "the modest gains in Nasdaq futures compared with the stronger advance in Dow futures suggest that investors remain selective," said Naeem Aslam, chief investment officer at Zaye Capital Markets.
CHIPS SUBDUED, MARKETS AWAIT EARNINGS
"The AI correction in equities could have much further to run," wrote Thomas Mathews, head of markets for Asia Pacific at Capital Economics.
"One further risk would be any concrete sign that the hyperscalers were paring back capital expenditures," he added.
KKR was up 3.7% ahead of the results, while Constellation was flat.
Of the 335 companies in the S&P 500 that reported earnings as of Thursday, 82.4% beat estimates, according to Tajinder Dhillon, head of earnings and equity research at LSEG Data and Analytics.