Tokyo's Nikkei jumped 2.4% on chip-related names while the broader Topix rose half as much. U.S. futures held steady after a Friday in which the S&P 500 outpaced its equal-weight version by more than 2 to 1.
Equity markets opened the week the way they closed the last one: led by a narrow group of artificial intelligence beneficiaries, with the average stock trailing behind.
U.S. stock futures were little changed early Monday. S&P 500 futures were at 7,770.75, down 0.08%, and Dow futures were 0.09% lower at 51,433. On Friday, the S&P 500 closed at 7,722.72, the Nasdaq Composite at 27,190.86 and the Dow industrials at 51,176.96.
Breadth is the tell
Friday's session showed how concentrated the gains have become. The S&P 500 rose 0.73% while its equal-weighted counterpart gained 0.33%, meaning the largest companies did more than twice the work of the typical member. The Nasdaq set a record on the same day.
The same pattern played out in Asia on Monday. The Nikkei 225 rose 2.40% to 69,946.86, while the broader Topix gained about 1.2%. The difference reflects heavy weightings in a handful of technology and chip-equipment names that tend to move with U.S. AI sentiment.
Fresh support for that trade came from Taiwan, where Foxconn reported third-quarter revenue up 47% from a year earlier, ahead of forecasts. As a key assembler of AI servers, Foxconn's sales give an early read on demand for the hardware that Nvidia and its suppliers sell. Nvidia was bid about 0.7% higher before the open, near record territory.
Europe goes the other way
European stocks weakened. The CAC 40 fell 0.94% by late morning in Paris, dragged by Schneider Electric's 9% slide after it agreed to buy PTC, and the Euro Stoxx 50 lost 0.38%. The euro touched its weakest level against the dollar since May 2025 as concern over French public finances spread into currency markets.
Rates and commodities
The backdrop for equities remains demanding. The 10-year Treasury yield stood near 5.26% early in Asian trading. Brent crude traded at $102.53 a barrel, while gold rose 0.8% to $4,195.60 an ounce. The dollar index was at 101.89.
The persistence of AI leadership despite 5%-plus long-term yields is the market's central tension. Higher discount rates usually weigh hardest on long-duration growth stocks, yet those are the names still leading. One explanation is that earnings growth among AI beneficiaries is outrunning the rate drag. The alternative is that the leadership is narrowing because fewer companies can clear a higher hurdle.
Today's calendar
The ISM services index for September is due at 10 a.m. Eastern, with economists expecting a reading of 55.1. Its prices component will be closely read after last week's manufacturing survey showed input prices at 77.9. Minutes from the Federal Reserve's September meeting follow on Wednesday.
What to watch: Whether the equal-weight S&P 500 can outperform the cap-weighted index on any day this week. A broadening rally would ease concern that a handful of names are carrying the market; another day of narrow gains would deepen it.