On Monday in Asian trading hours, the sell-off in equities eased as regional markets declined less sharply than Wall Street, while U.S. stock futures rose. Crude oil prices fell.
Japanese and Australian benchmark indices declined, while South Korea and Hong Kong benchmarks advanced, pushing the MSCI Asia-Pacific Index down 0.5%. This followed Friday’s steep drop of 3.5% in the Nasdaq 100 index—the largest single-day loss since June—and a 7.2% plunge in the Philadelphia Semiconductor Index. On Monday, S&P 500 and Nasdaq 100 futures each gained at least 0.4%, signaling a potential rebound when U.S. spot markets reopen.
Brent crude dropped 2.9% to $110.19 per barrel, influenced by President Trump’s desire to give diplomacy more time before deciding whether to resume strikes on Iran after Tuesday’s midterm elections. Gold rose 0.9% to around $3,910 an ounce, recovering from last Friday’s lowest close in over a year.
Friday’s market selloff reflected growing investor skepticism toward tech companies whose core businesses are slowing while AI spending surges. Alphabet Inc. and Amazon.com Inc.’s earnings reports last week intensified concerns that artificial intelligence is eroding the very businesses funding these investments.
However, some market participants view this downturn as a buying opportunity. Mike Wilson, chief equity strategist at Morgan Stanley in New York, said upcoming “liquidation events” could temporarily suppress prices and create opportunities for investors to add positions.
“The dollar remains influenced by both artificial intelligence and oil prices,” said Mohsen Moosavi, foreign exchange strategist at United Overseas Bank Singapore. “The slight rebound in Nasdaq futures brought some relief, while softer oil prices eased inflation worries. The November 3 midterm elections add another layer of risk. We remain bullish on the dollar, but risks are becoming increasingly complex.”
Plugin Case Analysis
Gold: Prices plunged by $120 on Friday due to thin offshore market liquidity, amplifying volatility. On Monday, gold recovered from around $3,870 back to near $3,900, suggesting further corrective rebound may follow. A retest after reclaiming $3,930 during the day could present a buying opportunity; alternatively, consider entering after a secondary bounce following a liquidity sweep at $3,880.
(Gold 15-minute chart)
Nasdaq: After correcting to around 28,000, prices began to rebound. On Monday, they opened higher with a gap up, offering low-risk buying opportunities if the gap closes. Alternatively, look for a pullback after further recovery to reclaim 28,750.
(Nasdaq 15-minute chart)
Crude Oil: With ongoing weekend mediation news, prices opened lower on Monday, breaking below the $103 level. However, we believe sideways consolidation is more likely in the short term. Watch for signals of a second leg down after liquidity sweeps near the gap.
(Crude Oil 15-minute chart)
Key Financial Data and Events Today:
17:00 Eurozone October Manufacturing PMI Final
17:30 UK October Manufacturing PMI Final
22:45 US October S&P Global Manufacturing PMI Final
23:00 US October ISM Manufacturing PMI
23:00 US September Construction Spending Month-on-Month
