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World Markets Bounce Back on AI Upturn 11/09 04:49
World shares and U.S. futures advanced Monday after artificial intelligence
stocks recovered some ground lost in last week's sell-offs.
(AP) -- World shares and U.S. futures advanced Monday after artificial
intelligence stocks recovered some ground lost in last week's sell-offs.
In early European trading, Germany's DAX climbed 0.6% to 25,974.42, and the
CAC 40 in Paris was up 0.4%, at 8,168.36. Britain's FTSE 100 rose 0.4% to
10,720.81.
The future for the S&P 500 was up 0.3% and that for the Dow Jones Industrial
Average climbed 0.6%.
Taiwan's Taiex led gains in Asia with a 4.9% jump, thanks to a rebound in
computer chipmaker TSMC, which surged 4.7%.
Regional tech stocks benefited from Friday's rally in the U.S., where AI
stocks got some relief from their sell-offs earlier in the week on worries that
Democratic victories in the midterm elections could slow construction of AI
data centers, particularly in Texas. Voters across political parties say they
are wary about AI and don't like increases to power bills caused by data
centers.
Investors also are watching to see what the Democrats' sweeping victories
will mean for markets and the broader economy.
Monday trading started out strong in Tokyo, where the Nikkei 225 index
closed 2.3% higher at 58,775.50.
Chip equipment maker Tokyo Electron climbed 2.8%, giving up bigger gains
earlier in the day, while Advantest, which makes testing equipment, was up 1.3%.
SoftBank Group's shares fell 4.2% as the company maneuvered to salvage a
$5.4 billion robotics deal with Switzerland's ABB that Chinese regulators have
rejected.
In South Korea, the Kospi fell back after rising in the morning, shedding
0.8% to 5,018.85. Samsung Electronics Corp. gained 0.6% and chipmaker SK Hynix
rose 0.4%. Those are very modest gains for companies whose share prices have
yo-yoed as investors dumped and then snapped up AI-related shares over the past
few weeks.
Elsewhere in Asia, Hong Kong's Hang Seng edged 0.1% lower to 24,448.95. The
Shanghai Composite index added 0.3% to 3,660.79.
Australia's S&P/ASX 200 edged 0.1% higher to 9,029.70.
On Friday, the S&P 500 rose 0.3% and trimmed its loss for the week to 2.7%,
which was its worst since U.S. President Donald Trump shook markets in April
2025 with his "Liberation Day" tariffs. The Dow Jones Industrial Average
dropped 0.5%, and the Nasdaq composite climbed 1.1%.
The relative steadiness halted what had been a worldwide tumble for stocks.
Indexes dropped 6% in Tokyo and in Seoul following Wall Street's plunge on
Thursday.
Friday's biggest lift for the S&P 500 came from Nvidia, the chip company
that has become the face of the boom and possible bust of the AI frenzy. Its
stock climbed 2.8%, coming off drops of 9.3% and 3.2%.
Nvidia said Sunday it was opening an investigation into reports that CEO
Jensen Huang was the target of a foreign intelligence effort. That followed
Huang's acknowledgment that he had been intimate with a business executive who,
according to The New York Times, U.S. intelligence determined was gathering
information for China.
During a routine briefing Monday, China's Foreign Ministry dismissed the
spying allegations, calling them a smear campaign against Beijing.
Nvidia's share price fell 4.1% in premarket trading early Monday.
Nvidia is a central player in the race to develop artificial intelligence.
Its chips power many of the data centers and computing systems used to train
and run AI models. Its advanced processors have also been a focus of U.S.
export restrictions aimed at limiting China's access to cutting-edge
semiconductor technology.
"The scrutiny surrounding Jensen Huang reaches far beyond a personal
scandal, touching the increasingly sensitive intersection of U.S. technology
leadership, China and national security," Stephen Innes of SPI Asset Management
said in a commentary.
Despite its recent gyrations, the S&P 500 is only 5.7% below its all-time
high, which was set last month.
A report released Friday showed U.S. employers hired many more workers last
month than economists expected, in the latest signal that the U.S. economy is
chugging along despite high inflation.
In other dealings early Monday, Brent crude oil, the international standard,
slipped 2% to $96.38 per barrel. U.S. benchmark crude fell 1.5% to $89.56 per
barrel.
The U.S. dollar slipped to 158.09 Japanese yen from 158.36 yen late Friday.
The euro rose to $1.1188 from $1.1142.
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