Chip Stocks Rebound as AI Optimism Lifts Nasdaq Ahead of Earnings - Market Wrap
US stocks advanced as investors bought semiconductor shares following a recent selloff, betting that continued investment in artificial intelligence will support strong corporate earnings. A gauge of major chipmakers rose 1.6%, while the Nasdaq 100 gained 1.2%, signalling a recovery in sentiment toward the AI trade. Meanwhile, Nscale was reportedly in discussions to supply computing power to Anthropic in a potential deal valued at around $45 billion, highlighting the scale of spending on AI infrastructure. Investors are also looking to upcoming results from Meta and Tesla for fresh indications of whether heavy AI investment can deliver sustainable growth and justify elevated technology valuations. Elsewhere, persistently high oil prices weighed on US Treasuries, while French government bonds came under pressure following a weekend of violent unrest.
US stocks advanced as investors bought semiconductor shares following a recent selloff, betting that continued investment in artificial intelligence will support strong corporate earnings. A gauge of major chipmakers rose 1.6%, while the Nasdaq 100 gained 1.2%, signalling a recovery in sentiment toward the AI trade. Meanwhile, Nscale was reportedly in discussions to supply computing power to Anthropic in a potential deal valued at around $45 billion, highlighting the scale of spending on AI infrastructure.
Investors are also looking to upcoming results from Meta and Tesla for fresh indications of whether heavy AI investment can deliver sustainable growth and justify elevated technology valuations. Elsewhere, persistently high oil prices weighed on US Treasuries, while French government bonds came under pressure following a weekend of violent unrest.