Fragile calm after AI whiplash
SPY•Asian shares rebounded and US equity futures edged higher after a volatile week of AI-trade unwinding. Markets are watching tech earnings and Tuesday’s US CPI report; traders are pricing in an 80% chance of a Federal Reserve rate increase of at least 25 basis points next month.
1. Markets find some calm
Asian shares rebounded and US equity futures edged higher after Wall Street ended Friday higher, but optimism remains fragile. More tech earnings this week, including results from CoreWeave, Applied Materials and Cisco Systems, are expected to test the recovery in AI-related shares.
2. Economic and oil watch
Tuesday’s US CPI report is in focus after last week’s jobs report exceeded estimates and showed resilient labour-market growth. Markets are pricing in an 80% chance of a Federal Reserve rate increase of at least 25 basis points next month. Oil prices eased after Donald Trump said he was highly unlikely to order fresh attacks on Iran while talks continued to make progress.
