UBS strategists caution: Exercise caution with Nasdaq futures

After the AI sector selloff dragged the Nasdaq sharply lower yesterday, Nasdaq futures rose at one point this morning. But UBS equity strategist Gerry Fowler said investors should not be overly optimistic about this rally in the futures market, and more selling is likely to follow. The strategist said U.S. trend-following quantitative investment strategies are still holding long equity positions and will likely follow yesterday's sharp decline and cut exposure. Fowler believes this cautious rise is not a real rebound, but rather tentative buying in a futures market with relatively weak liquidity. "As the U.S. stock market open approaches, we need to keep watching fund flows and not overinterpret the recovery."