After a brutal Friday session in which the Nasdaq fell about 2.86%, U.S. stock futures started the week slightly higher, with S&P 500 futures up about 0.2% and Nasdaq 100 futures up 0.3%.
📈 So, will we see a strong rebound today, Monday?
The scenario is possible, especially after the fierce sell-off that hit tech stocks. But there’s a big difference between a temporary bounce and the start of a genuine recovery!
Markets may see what is known as a “relief rally” after a sharp drop, driven by short covering and some investors snapping up shares whose prices have fallen.
⚠️ But the problem is that the reasons for the correction haven’t necessarily gone away!
Concerns about AI company valuations, massive technology spending, and the future of interest rates continue to weigh on investor sentiment.
🔍 The real test today isn’t just a rise in the Nasdaq, but whether gains broaden and persist, and buying liquidity returns.
Bottom line: We may see green today… but one up session doesn’t mean the market is out of the correction.
This is not investment advice.