Investors are buying on Monday despite fear the AI trade nightmare scenario is far from over – USFTB
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Hello, this is Leonie Kidd, and this is my first edition of Morning Squawk.
It’s always nice to start the week on a positive note, but the pop in futures after AI’s nightmare week comes with a note of caution. While some investors are choosing to see the buying opportunity, others are taking these gains and still rotating out of tech.
Happening now: Buying the dip
The buyers are ready to get back into technology stocks, with futures indicating the Nasdaq will catch the biggest bid at today’s open. The move looks set to regain only some of the losses from last week, which saw cracks emerge in the AI boom, sending the tech-heavy index down 4.5%.
The glass half full: In a note on Sunday, Dan Ives, Partner at Yorkville Ives, said he views this “white-knuckle drawdown as a golden buying opportunity.”
Contrary to the contrarian: But BTIG is telling investors to use any rebound in semiconductor stocks to reduce exposure, warning, “where there is smoke, there is fire.”
Why it matters: The Cboe Volatility Index hit its highest levels since June on Friday, a sign that fear is growing on Wall Street that a bigger correction could be ahead. Let’s see if today’s bounce has enough conviction to assuage that concern.
The CBOE Volatility Index hit its highest level since June 2026 on Friday.
Mixed signals from China: China’s third-quarter GDP data surprised to the upside, lending support to gains across Asian equity markets, but shares in China’s memory chipmaker CXMT fell despite its swing to profitability.
Big movers: Comeback kings
CoreWeave is set to open higher by around 3%, but that doesn’t put much of a dent in the 25% drop from last week. It’s a similar picture for Nebius which is also seen opening higher after losing the same amount as its neocloud peer.
- CNBC contributor and OpenInterest.PRO strategist Michael Khouw says CoreWeave’s slow-motion meltdown has left the stock primed for more explosive volatility.
Earnings coming up: It’s the heart of earnings season, with some huge names due to publish numbers over the coming days. As of Friday, 85% of the S&P 500 companies that have reported thus far have beaten expectations.
Developing: Ukraine in the crosshairs
The latest news: Russian President Vladimir Putin has reportedly suggested a summit between himself, U.S. President Donald Trump and Chinese President Xi Jinping. That’s according to the Wall Street Journal.
Why it matters: Oil prices are driving lower in early trading on Monday as investors focus on more sanctions relief on Moscow, after Trump justified more moves to ease restrictions on Russia.
How we got here: Tensions between Ukraine and Washington D.C. have been exacerbated by two main factors: the collapse of the so-called “energy ceasefire” and the dispute over access to Starlink.
- CNBC’s Elsa Ohlen spoke to experts about why the U.S.-Russia diesel deal offers limited financial gain, but could embolden Putin to seek further Western concessions.
Ongoing: France on fire
French stocks are sharply lower in the European trading session, led lower by the banks, luxury and hospitality stocks.
It follows a weekend of unprecedented violence across Paris and other parts of France as a huge peaceful demonstration turned sour, with looting alongside the destruction of government buildings and shops.
Why it matters: The unrest has sent French bond yields higher once again, despite efforts from President Emmanuel Macron to calm the unrest on the streets and the political tensions from the far left to far right.
- Economists have previously told CNBC that rising French yields could set up U.S. Treasurys for a boost, restoring confidence in American debt over other sovereign alternatives.
Quoted: Trump on France
President Donald Trump on Truth Social: “France is burning! The immigration of people from an entirely different world, people with hatred in their hearts, has shattered that once great country. Close your Borders and take control, before it is too late!”
And Finally…
New AI devices are pushing legal limits
Chris Thomas is all-in on AI gadgets.
Thomas, 43, wears a pair of Meta‘s camera-equipped glasses, a Fieldy note-taking pendant around his neck and a wristband from Amazon‘s Bee, all of which record his daily life. A Pittsburgh-based business owner and a livestreamer, Thomas relies on the devices to help him stay organized, pay bills on time and set reminders.
“I’m forgetful AF,” Thomas said in an interview. “My life is so crazy that not having to remember to remember is fantastic.”
— CNBC’s Arjun Kharpal, Sarah Min, Elsa Ohlen, MacKenzie Sigalos and Liz Napolitano contributed to this report.
John Melloy edited this edition.
