European stocks rebounded on Monday following last week’s sell-off of technology stocks on Wall Street.
Tech stocks led a stock market rout in the US last week, as investors began to turn away from the clear equity leaders from the past several months.
The Financial Times on Friday reported that Japan’s Softbank was the “Nasdaq whale” that “stoked the fevered rally in big tech stocks.”
The Wall Street Journal reported that SoftBank spent around $4bn (£3bn) buying call options on stocks, leaving the market vulnerable to a disorderly equities sell-off.
“Today should in theory be quiet-ish due to the US Labor Day holiday. However, the market will be trying to come to terms with last week’s late tech rout that at one point saw the Nasdaq down circa 10% in a little over 24 hours between the open on Thursday and early trading on Friday,” said analysts at Deutsche Bank.
Stocks in Asia struggled for direction on Monday despite better-than-expected export data from China. Exports of Chinese-made goods rose by 8.5% in August, the biggest monthly gain since March 2019.
While markets in the US are closed due to Labor Day, futures are pointing to further losses on Tuesday.
Futures on the Nasdaq (NQ=F), which last week had its worst weekly performance since March, fell by around 1%.