39 years after Black Monday, Wall Street got a bounce instead of a crash

On Oct 19, 1987, the Dow plunged 22.6% in a single session, still the worst day in US stock market history

This Monday, the weekend chatter was full of crash talk after last week's AI selloff. Into the open, Nasdaq 100 futures were up about 1.2% and S&P 500 futures about 0.5%, per Reuters

Last week was brutal. The Nasdaq fell 4.5% and the S&P 1.95%, the worst week for both since late June. The Philadelphia Semiconductor Index dropped for 8 straight sessions, its longest losing streak since October 2008, closing Friday at 11,137 after a 3.8% drop and down 16% since Oct 6

$Coreweave(CRWV.US), which had plunged more than 25% last week on debt fears, climbed about 6.6% in premarket. $Broadcom(AVGO.US) and $Micron Tech(MU.US) were up more than 3% each, with $NVIDIA(NVDA.US) and $Amazon(AMZN.US) up more than 2%

Oil cooled too. Brent was down about 1.5% near $108 after some Russia sanctions were waived, taking a little pressure off rate-sensitive tech

The real test is still ahead. $Netflix(NFLX.US) and $SpaceX(SPCX.US) report Tuesday, then $Meta Platforms(META.US) and $Tesla(TSLA.US) on Wednesday. Last week's selling was about how the AI buildout gets financed. One quiet open on the anniversary of 1987 does not answer that. It just shows that when everyone is positioned for a crash, the bounce often shows up first

Source: StockMarket.News