U.S. stock futures opened higher Sunday evening, signaling a potential bounce after Friday's decline in the Nasdaq Composite, despite online calls for a "Black Monday" crash to start the week.

The Kobeissi Letter dismissed crash predictions, citing a chart tracking instances where "Black Monday" trended since May 2025. During that period, the S&P 500 climbed from approximately 5,500 to 7,650 points. The firm called current selloff worries "overdone" and argues the S&P 500 could trade above 9,000 points absent the ongoing Iran war.

S&P 500 futures rose 0.72 percent to 7,760 on Sunday. Nasdaq 100 futures gained 1.2 percent to 29,743, and Dow futures added 0.44 percent to 52,446. These gains followed Friday's broadly negative close: the S&P 500 fell 1.09 percent to 7,659.44, the Nasdaq Composite dropped 2.14 percent to 26,140.03, and the Dow Jones Industrial Average slid 0.34 percent.

But Kobeissi Letter's own analysis last week identified a critical vulnerability: 84 percent of S&P 500 constituent stocks trade at least 10 percent below their record highs, marking what the firm called a "stealth" bear market within the larger bull trend. More damaging, just 10 stocks accounted for 70 percent of the S&P 500's overall gain since its March low. This concentration—mega-cap tech dominance—narrows the index's support base and heightens downside risk if leadership falters.

Memory stocks faced pressure last week. Investors weighed strong AI-driven demand against rising interest rates, intensifying competition from Chinese competitors, and uncertainty over supply shortage duration.

Recession warnings are mounting. David Rosenberg, founder of Rosenberg Research, said last week he sees better-than-even odds of a U.S. recession within a year, describing the market as a bubble driven by investor behavior. Larry Fink, CEO of BlackRock Inc. warned that local moratoriums on data center construction could push the U.S. economy into recession by disrupting the capital spending now driving growth.

Traders on the Polygon-based Polymarket platform price a 7 percent chance of a U.S. recession by the end of 2026 and a 35 percent probability by the end of 2027.

Asian markets showed mixed performance. South Korea's KOSPI rose 0.61 percent while Japan's Nikkei 225 fell 0.88 percent.