U.S. stock futures were higher late Sunday, signaling a bounce from Friday’s slide in the Nasdaq Composite, even as calls for a Black Monday crash were trending.
The Fear Is ‘Overdone’
The Kobeissi Letter took the opposite approach to the calls for a Black Monday crash, posting on X a chart that tracks every time the term has trended since May 2025.
Over that stretch, the S&P 500 has climbed from about 5,500 to around 7,650, and the market commentator called the selloff worries “overdone.”
In an analysis published last week, the firm argued that the S&P 500 is in a “stealth” bear market “within a bull market.”
It said that 84% of the index’s stocks trade at least 10% below their record highs, while just 10 stocks have driven 70% of its gain since the March low.
Without the Iran war, the index could, it contends, be above 9,000.
Futures Move Higher
S&P 500 futures rose 0.72% to 7,760 on Sunday, after the index closed 1.09% lower at 7,659.44 on Friday. Nasdaq 100 futures gained 1.2% to 29,743 and Dow futures added 0.44% to 52,446.
On Friday, the Nasdaq Composite closed 2.14% lower at 26,140.03, and the Dow fell 0.34%.
Memory stocks were under pressure last week with investors balancing strong AI-driven demand against rising interest rates, Chinese competition and uncertainty over how long supply shortages will last.
In Asia, South Korea’s benchmark index KOSPI rose 0.61%, while Japan’s Nikkei 225 fell 0.88%.
Recession Odds Split
Traders on the Polygon (CRYPTO: POL)-based Polymarket have priced in a 7% chance of a U.S. recession by the end of 2026, with a 35% chance of a recession by the end of 2027.
Rosenberg Research founder David Rosenberg said last week that he sees better-than-even odds of a recession within a year, calling the market a bubble driven by investor behavior.
BlackRock Inc. CEO Larry Fink cautioned that local moratoriums on data center construction could tip the U.S. economy into a recession by disrupting the capital spending driving growth.
Price Action: The State Street SPDR S&P 500 ETF Trust (NYSE:SPY) closed 1.11% lower on Friday at $763.25 and was down 0.83% to $769.62 in overnight hours. The Invesco QQQ Trust (NASDAQ:QQQ) fell 2.50% to $709.80 and lost 0.27% to $707.87 in extended trading.
The State Street ETF has a Momentum score in the 73rd percentile and a positive price trend across the short, medium, and long term, according to Benzinga Edge rankings.
See More: Top Momentum Stocks
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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