Tech Earnings Week: Futures Rebound After AI Selloff

U.S. stock futures rose on Sunday night as investors steadied themselves for a big week of tech earnings, following a sharp AI selloff that sent the Nasdaq to its worst week since late June. Nasdaq 100 futures climbed 1 percent to 29,693.75, S&P 500 futures added 0.6 percent to 7,749.50, and Dow futures gained 160 points, or 0.3 percent, to 52,374.

Last week's AI selloff was led by semiconductors: the PHLX Semiconductor Index fell for an eighth consecutive session on Friday, its longest losing streak since October 2008, closing at 11,137.29. For the week, the Nasdaq Composite dropped 4.48 percent to close Friday at 26,140.03, the S&P 500 fell 1.95 percent, and the Dow managed a 0.67 percent gain.

Friday's session captured the week's mood. The S&P 500 fell 1.09 percent to 7,659.44, the tech-heavy index dropped 2.15 percent to 26,140.03, and the Dow slipped 0.34 percent to 52,002.41, while the VIX jumped 21.45 percent. Among the eleven major sectors, only energy, utilities, consumer staples, materials, financials and real estate finished higher.

The coming days bring a concentrated run of earnings reports that will test whether the selloff was an overreaction or a repricing. All of the week's major results are due after the closing bell, putting overnight futures in the spotlight each evening.

Tuesday's session sets the tone: SpaceX (SPCX, estimated earnings per share of $0.16) and Netflix (NFLX, $0.82) report after the bell, and stock futures will be the first verdict on the numbers when trading resumes.

Earnings in focus

Wednesday is the busiest day, with Meta ($5.89), Tesla ($0.40), Texas Instruments ($2.41), Lam Research ($2.18) and IBM ($2.87) all reporting. Investors will scrutinize capital expenditure plans at the chip buyers and cash flow at the AI infrastructure names, since the week's debate has centered on whether spending can keep pace with demand for semiconductors.

Thursday brings Western Digital ($4.06), capping a week of earnings reports that spans the full AI supply chain from memory to cloud. Western Digital shares fell 16.4 percent last week, making its outlook one of the most watched of the week.

The week's calendar

Beyond the headline numbers, this round of tech earnings will be judged on guidance: whether revenue growth can keep pace with expanding capital expenditures, and whether operating cash flow covers the AI buildout. Semiconductor orders will also be in focus: if big customers keep ramping investment, the outlook for the chip supply chain brightens considerably.

Among the megacaps, only Apple finished Friday higher, gaining 0.43 percent to $343.46. Meta fell 3.72 percent, Alphabet dropped 2.47 percent and Tesla lost 2.13 percent, a sign of how narrow the week's damage was, and how much rides on the next round of results.

Cooling expectations for further rate hikes offered little relief to growth stocks. Federal Reserve Chairman Wash said in Bangkok on Friday that he would not forecast upcoming policy meetings, and the probability of an October rate increase receded, yet chip stocks kept sliding as investors reassessed AI companies' debt loads and cash returns.

Volatility has already spiked: the VIX closed Friday at 19.99, up from 15.21 on October 12, a weekly jump that reflects how quickly sentiment turned. A calm set of results could bring stock futures, and the fear gauge, back down just as fast.

If the week's earnings reports reassure, Sunday night's rebound may mark the start of a steadier stretch. If not, investors will have fresh evidence that the market's AI trade is being repriced in real time.