Investors are buying on Monday despite concerns that the AI ​​trade nightmare scenario is not over yet

Hello, my name is Leonie Kidd. This is the first edition of Morning Squawk.

It’s always good to start the week on a positive note, but be wary of a sharp rally in futures prices after a nightmarish week for AI. While some investors are trying to identify buying opportunities, others are taking advantage of these gains and still exiting tech investments.

Buyers are poised to return to tech stocks, with futures forecasts predicting the Nasdaq will hit an all-time high at today’s open. The move is likely to reverse some of the losses from last week, when the tech index fell 4.5% as the AI ​​boom cracked.

The glass is half full: Dan Ives, a partner at Yorkville Ives, said in a note on Sunday that he sees this “white joint drawdown as a great buying opportunity.”

Contrary to contrarians: But BTIG is urging investors to take advantage of the rally in semiconductor stocks to reduce exposure, warning that “where there’s smoke, there’s fire.”

Why it matters: On Friday, the CBOE Volatility Index hit its highest level since June, a sign of growing concerns on Wall Street that a bigger correction could be on the way. Let’s see if today’s rebound is convincing enough to allay those concerns.

Mixed signals from China: China’s third-quarter GDP data came in with an unexpected upside, supporting gains across Asian stock markets, but shares in Chinese memory chip maker CXMT fell despite a return to profitability.

CoreWeave is set to open around 3% higher, which doesn’t add much to the 25% drop from last week. This is a similar situation for Nebius, which has also lost the same amount of money as its Neocloud peers and is now seen gaining further.

CNBC contributor and OpenInterest.PRO strategist Michael Khouw says CoreWeave’s slow-motion meltdown exposes the stock to even more explosive volatility.

Earnings releases are coming: It’s the heart of earnings season, with several big-name companies set to release numbers in the coming days. As of Friday, 85% of S&P 500 companies that had reported so far had beat expectations.

Latest News: Russian President Vladimir Putin has reportedly proposed a summit between himself, US President Donald Trump, and Chinese President Xi Jinping. According to the Wall Street Journal.

Why it matters: Oil prices are lower in early trading on Monday as investors focus on expanded sanctions relief against Russia after President Trump justified further moves to ease restrictions on the country.

How we got here: Tensions between Ukraine and Washington, D.C., were exacerbated by two main factors: the collapse of the so-called “energy ceasefire” and a dispute over access to Starlink.

CNBC’s Elsa Oren spoke to experts about why the U.S.-Russia diesel deal has limited economic benefits but could embolden Putin to seek further concessions from the West.

French stocks fell sharply in European trading, with banks, luxury goods and hospitality stocks leading the decline.

Unprecedented violence erupted in Paris and other parts of France over the weekend, with large-scale peaceful demonstrations turning violent, with government buildings and stores destroyed and looted.

Why it matters: Despite President Emmanuel Macron’s efforts to quell street unrest and political tensions from the far left to the far right, the riots have caused yields on French government bonds to rise again.

Economists previously told CNBC that rising French yields could provide a boost to U.S. Treasuries and restore confidence in U.S. Treasuries versus other sovereign debt alternatives.

President Donald Trump on Truth Social: “France is on fire! Immigrants from a completely different world, people with hate in their hearts, have shattered this once great country. Close the borders and take control before it’s too late!”

New AI devices push legal limits

Chris Thomas is all about AI gadgets.

Thomas, 43, wears Meta camera glasses, a Fieldy note-taking pendant around his neck, and an Amazon Bee wristband, all of which record his daily life. Thomas, a Pittsburgh-based business owner and live streamer, uses his devices to stay organized, pay his bills on time, and set reminders.

“I’m very forgetful,” Thomas said in an interview. “My life is so crazy that it’s nice not to have to be reminded of it.”

—CNBC’s Arjun Kharpal, Sarah Min, Elsa Ohlen, MacKenzie Sigalos and Liz Napolitano contributed to this report.

John Meloy edited this version.