Global Shares Rise, Driven by AI-Related Stocks as Oil Prices Dip
Technology and chip manufacturers lead gains, while U.S. inflation data meets expectations.
Global stock markets experienced an upward trend on Thursday, largely propelled by gains in AI-related companies, particularly those involved in computer chips. This rise occurred as oil prices saw a decline.
In Asia, Japan's Nikkei 225 index concluded the trading day up 1.2%, reaching 68,308.59. South Korea's Kospi demonstrated significant strength, jumping 3.6% to 6,813.34, with notable increases in Samsung Electronics, which surged 4.9%, and chipmaker SK Hynix, which jumped 9%.
Markets in Europe showed mixed results in early trading. France's CAC 40 edged up 0.1% to 8,685.40, and the German DAX added 0.4% to 26,445.93. However, Britain's FTSE 100 shed 0.4% to 10,791.07.
U.S. stock futures indicated a moderate rise, with Dow futures up nearly 0.1% at 53,921.00 and S&P 500 futures rising nearly 0.1% to 7,775.25.
Earlier in the week, several artificial intelligence-focused companies reported earnings that exceeded analyst expectations for the spring quarter. Concurrently, a U.S. inflation report aligned with forecasts, suggesting a slight improvement in price trends.
Analysts note that investors are becoming more selective in their approach to AI stocks, shifting from broad sector enthusiasm to identifying specific companies with strong potential. The AI sector has recently experienced volatility, with significant rallies followed by periods of pressure due to concerns about overvaluation. Investor focus is now on whether substantial investments in AI are translating into sufficient profits and productivity gains, which could in turn sustain demand for essential components like chips and other AI infrastructure.
In commodity markets, benchmark U.S. crude oil fell $1.18 to $82.08 a barrel, while Brent crude, the international benchmark, decreased by $1.17 to $87.81 a barrel.
In currency trading, the U.S. dollar saw a slight decrease against the Japanese yen, trading at 159.37 yen compared to 159.42 yen previously. The euro was trading at $1.1526, down slightly from $1.1527. Fluctuations in foreign exchange rates have been under scrutiny, particularly after joint intervention by the U.S. and Japan to support the yen. Despite the recent minor dip against the yen, the dollar remains above the 150 yen level.