# Investors buy tech stocks on Monday despite AI downturn fears

Digest AI · Business & Funding · published 2026-10-19T12:00:15Z

Canonical: https://digestai.news/story/investors-buy-tech-stocks-on-monday-despite-ai-downturn-fears

## Summary

Futures point to a modest rebound in technology shares on Monday after the Nasdaq fell 4.5% last week when the AI boom cracked. Dan Ives, partner at Yorkville Ives, called the "white‑knuckle drawdown" a golden buying opportunity, while BTIG warned that "where there is smoke, there is fire" and urged investors to stay cautious.

CoreWeave and Nebius are each opening higher by about 3%, but both remain down roughly 25% from the previous week’s losses. The Cboe Volatility Index hit its highest level since June, signalling growing fear of a broader correction. Meanwhile, 85% of S&P 500 companies that have reported so far have beaten expectations, and mixed global cues – such as China’s better‑than‑expected Q3 GDP and a dip in oil prices after Russian sanctions talk – are adding to market uncertainty.

## Key points

- Nasdaq fell 4.5% last week as AI boom cracked, but futures point to a modest rebound on Monday.
- Dan Ives calls the drawdown a "golden buying opportunity" while BTIG warns investors to stay cautious.
- CoreWeave and Nebius each dropped about 25% last week, and the VIX hit its highest level since June.

## Why it matters

A modest rebound in tech stocks shows investors see value despite AI sector volatility, influencing capital allocation and market sentiment.

## Sources

1. [Investors are buying on Monday despite fear the AI trade nightmare scenario is far from over](https://cnbc.com/2026/10/19/stocks-buying-opportunity-ai-selloff.html) (CNBC Technology, 2026-10-19)

## Cite

Digest AI, "Investors buy tech stocks on Monday despite AI downturn fears", 19 October 2026, https://digestai.news/story/investors-buy-tech-stocks-on-monday-despite-ai-downturn-fears

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