Stock Futures Rebound as Big Tech Earnings Loom

The context

Monday's rebound carries a calendar footnote: it falls 39 years after the Black Monday crash of Oct. 19, 1987, which remains the steepest single-day percentage loss ever recorded in U.S. markets. That anniversary feeds a long-running perception of October as a dangerous month for stocks. Inc. reported that the month's reputation for crashes exceeds what the historical record actually shows -- October's track record does not match its notoriety.

The immediate backdrop is last week's slide in AI-linked shares, which dragged the Nasdaq to its sharpest weekly loss in months. The Financial Times tied the comparison point to April 2025, around the period of President Trump's 'liberation day' announcement, when the index last fell as much in a single week. The material does not detail what specifically triggered last week's selling.

Why it matters

Swings in the Nasdaq and S&P 500 flow directly into Americans' retirement accounts and brokerage portfolios, so a sustained AI selloff -- or a durable recovery -- affects household wealth broadly. The earnings from Netflix, Tesla and Meta carry outsized weight because results from large technology companies will shape whether investors view last week's decline as a brief correction or the start of a longer retreat from AI-driven valuations. Retail investors' reported caution suggests confidence has not fully returned, making this week's reports a test of market direction.

What’s next

Netflix, Tesla and Meta report earnings this week; exact dates were not specified in the material. Those results will indicate whether the pullback in AI-linked stocks has ended or has further to run. Key open questions include whether Monday's futures gains hold through the regular trading session and whether retail investors shift from caution to buying once the numbers land.