Image Source: Yahoo Finance
Stocks opened the week on a firmer note as Wall Street prepared for a high-stakes stretch featuring Apple earnings, the U.S. midterm elections, fresh jobs data and renewed oil-market pressure. U.S. stock futures moved higher Sunday evening, offering investors a brief rebound after a brutal October selloff focused on artificial intelligence and semiconductor companies.
S&P 500 futures gained 0.46%, Nasdaq 100 futures rose 0.90% and Dow futures added 0.31%. Russell 2000 futures also climbed 0.54%, suggesting that investors were watching beyond the largest technology names as they assessed the broader market’s resilience.
Stocks Rebound After a Shocking $5 Trillion AI Rout
The latest market move follows a sharp decline in major AI and chip stocks. According to Yahoo Finance calculations, 47 AI and semiconductor companies lost approximately $5 trillion in combined market value since October 6. Nvidia and Alphabet each shed roughly $834 billion, while SpaceX lost about $505 billion and Taiwan Semiconductor Manufacturing Company declined approximately $395 billion.
Despite the scale of the technology selloff, weakness remained concentrated in a relatively narrow group of companies. The other 625 large U.S. stocks included in the calculation added about $1.3 trillion during the same period. That split has fueled debate over whether the market is entering a broader correction or simply rotating away from expensive technology shares.
The S&P 500 fell about 0.6% last week, but nine of its 11 sectors gained approximately 1% or more. Yahoo Finance reported that no other down week for the index since at least 1999 had included gains in so many sectors. The unusual performance suggests that investors may still be willing to take risk, although they are becoming more selective.
Apple Earnings Could Deliver a Critical Market Test
Apple is scheduled to report results after the closing bell Monday. Investors are expected to focus heavily on demand for the iPhone 18, the company’s outlook and whether consumer spending remains strong despite economic uncertainty.
Apple ended Friday with a market value of approximately $5.03 trillion, narrowly ahead of Nvidia at around $4.93 trillion. The company has also been a standout among the so-called Magnificent Seven, rising about 27% this year compared with an approximately 11% gain for the S&P 500.
Palantir is also expected to report on Monday. Its results could provide another closely watched signal about corporate spending on artificial intelligence, software demand and the sustainability of the AI investment boom.
Oil Prices, Elections and Jobs Data Add Volatility
Energy markets are another major concern for traders. West Texas Intermediate crude opened lower Sunday after settling above $104 per barrel on Friday, its highest closing level since mid-September. Oil prices remained volatile as the Strait of Hormuz stayed effectively closed during the ninth month of the Iran war.
OPEC+ kept its December production targets unchanged on Sunday, according to the report. Crude prices were later indicated near $100.70 per barrel, down 3.28% in the available market data. Higher energy costs could complicate the inflation outlook, pressure consumers and influence expectations for Federal Reserve policy.
U.S. voters head to the polls Tuesday for the midterm elections. Investors will be watching for any result that changes expectations around taxes, regulation, government spending or future economic policy. The October employment report, due Friday, is also likely to shape market expectations about interest rates and the possibility of renewed Federal Reserve support.
What Investors Should Watch This Week
- Apple earnings: iPhone 18 demand and company guidance may influence the technology sector.
- Palantir results: The report could offer clues about business demand for AI software.
- Midterm elections: Political uncertainty may affect sector leadership and market sentiment.
- Jobs data: Hiring and wage trends could change expectations for the Federal Reserve’s next move.
- Oil prices: Geopolitical risks and the Strait of Hormuz remain central to the inflation outlook.
Historical patterns offer conflicting signals. One view suggests the technology selloff could deepen before stabilizing. Another points to a traditionally stronger period for the S&P 500, from the end of a midterm-election October through the following June. Since 1950, the index has risen during that period, according to the analysis cited by Yahoo Finance.
Both possibilities could emerge at once. Technology shares may continue to struggle while financial, industrial, energy or consumer companies support the wider market. For investors, the week ahead may reveal whether the recent AI rout was an isolated reset or the beginning of a more powerful shift in market leadership.
Frequently Asked Questions About Stocks This Week
Why are stocks rising after the AI selloff?
U.S. stock futures moved higher as investors positioned for Apple earnings, the midterm elections and the October jobs report. The rebound followed steep losses in AI and chip companies.
How much value did AI and chip stocks lose?
Yahoo Finance calculations estimated that 47 AI and semiconductor stocks lost about $5 trillion in combined market value since October 6.
Why are Apple earnings important?
Apple is one of the world’s most valuable companies and the only Magnificent Seven stock significantly outperforming the S&P 500 this year. Its iPhone 18 sales outlook could influence technology shares.
How could oil prices affect the stock market?
Higher oil prices can increase inflation pressure, raise costs for businesses and consumers, and influence Federal Reserve interest-rate expectations. Geopolitical developments remain a major risk.
