AI Trading Selloff Sparks US Stock Futures Rebound, Market Focuses on Whether Tech Stocks Can Regain Leadership

Odaily: US stock index futures rose on Monday, led by tech stocks. Falling oil prices provided some relief to the market after AI investment trades suffered a dismal week. Investors are now turning their attention to a series of potential market catalysts this week, including October manufacturing data, Apple's earnings report, and the US midterm elections.

Daniel Kirsche, Head of International Technical Analysis and Strategy at Jefferies, wrote in a client note on Monday: "While the weakness in large-cap tech stocks supports our view of broadening market participation and capital rotation, Friday's selloff also raised some questions about our overall market outlook. We had expected a recovery toward the end of the fourth quarter, driven by improving market breadth, with tech stocks eventually catching back up."

Mike Wilson, Chief US Equity Strategist at Morgan Stanley, believes the market correction that began in June has entered its "final phase," with market breadth improving. He noted that several potential "risk-clearing events" could still trigger a new round of declines and create opportunities for investors to add positions.