AI stocks rebound after three-day sell-off
Global equity markets recovered following a three-day sell-off driven by concerns over the sustainability of artificial intelligence investments.
On Wall Street, the S&P 500 ended its losing streak, while reassuring comments from Nvidia CEO Jensen Huang regarding CoreWeave's financial position helped ease selling pressure on semiconductor stocks. The equal-weighted S&P 500 index rose 1.4%, indicating that buying interest extended beyond the technology sector.
The market recovery was also supported by Federal Reserve (Fed) Chair Kevin Warsh's decision not to signal another interest rate hike strongly. Market expectations for an October Fed rate increase fell from above 25% to 15%. In Asian markets, the MSCI Asia Pacific Index climbed 1.6%, while shares of Samsung Electronics and SK Hynix gained more than 4%. South Korea's Kospi index also rebounded 4% following sharp losses in the previous session.
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