Gold Rises & US Stock Futures Rise Following a Tech Rout – Asia Market Wrap
US equity-index futures increased as the final full trading week of 2025 began, despite concerns over technology company results and hefty AI spending sparking a selloff on Wall Street.
Contracts for the S&P 500 and Nasdaq 100 indices rose 0.2% after falling more than 1% Friday, along with tech stocks. Asian stocks fell on Monday, with South Korea, a poster child for AI euphoria, dropping 1.2%. Futures also showed that European equities would rise at the open.
Global risk appetite has dwindled amid concerns that tech firms, which have propelled global benchmarks to new highs, can maintain their exorbitant valuations and rapid AI spending. Much of the investment is a long-term wager on technology that may take years to deliver major commercial returns, exacerbating short-term uncertainty.
Scepticism is growing, as evidenced by a recent selloff in Nvidia shares, Oracle’s drop after reporting increased AI spending, and soured mood surrounding a network of companies exposed to OpenAI. Looking ahead to 2026, investors are debating whether to reduce their AI exposure in anticipation of a potential bubble burst, or to double down to capitalise on the game-changing technology.
In other market news, gold was poised for a fifth day of gains after conflicting words from Fed officials encouraged traders to reduce expectations on further monetary easing in the US next year.
