US stocks recover after AI sell-off

{"text":[[{"start":0,"text":"US tech stocks recovered ground following their biggest weekly drop since President Donald Trump’s “liberation day” tariff announcements in April last year."}],[{"start":18.48,"text":"The tech-heavy Nasdaq 100 index jumped as much as 2.1 per cent in Monday morning trading, before paring gains to close 1.2 per cent higher. The broad-based S&P 500 climbed 0.4 per cent."}],[{"start":32.88,"text":"Analysts said the moves were a natural swing back after an AI sell-off on Friday that took the Nasdaq 100’s decline for the week to 5.5 per cent."}],[{"start":41.36,"text":"The stock market “went too far too fast on the bear case for AI”, said Seb Barker, chief market strategist at hedge fund firm Marshall Wace."}],[{"start":50.48,"text":"The sell-off came amid concerns about a decline in the price of debt backing AI infrastructure projects, which added to worries among investors over the conflict in the Middle East."}],[{"start":60.24,"text":"Prashant Bhayani, chief investment officer for Asia at BNP Paribas Wealth Management, said the improvement in sentiment had also been helped by there being “no intensification of the Iran war [over the weekend] in a material way”."}],[{"start":null,"text":"

"}],[{"start":73.48,"text":"But European stocks were lower after a weekend of unrest in France added to investor nerves about the Eurozone’s growth outlook."}],[{"start":80.96,"text":"France’s 10-year bond yields jumped 0.15 percentage points to 4.94 per cent, close to its multiyear highs, while Italian debt also sold off."}],[{"start":88.88,"text":"The region-wide Stoxx Europe 600 stock index fell 0.8 per cent, while France’s Cac 40 dropped 1.1 per cent."}],[{"start":100.04,"text":"Shares in neocloud provider CoreWeave, which was at the heart of last week’s AI sell-off, rose as much as 7.4 per cent on Monday morning in New York after last week’s 25 per cent fall. But trading remains volatile: the stock reversed course and closed 0.4 per cent lower. The company’s bonds also slid during the sell-off, fuelling fears of a wider crunch in AI-linked credit."}],[{"start":123.52,"text":"In a note on Monday, Ajay Rajadhyaksha, Barclays’ global chair of research, said CoreWeave’s bonds were not a “signal” for the health of the AI capex cycle."}],[{"start":134.12,"text":"“The question for investors isn’t whether CoreWeave’s credit card rate is high,” he added. “It’s whether the demand for what CoreWeave is building is real.” Recent bumper numbers from chipmaker TSMC and machine maker ASML “just answered that question emphatically,” he said."}],[{"start":152.8,"text":"In Indonesia, a market rout triggered by MSCI’s threat to exclude the country from its benchmark indices deepened. The Jakarta Composite index fell 3.6 per cent, extending Friday’s 11.6 per cent decline."}],[{"start":167.48,"text":"Oil prices staged an afternoon recovery, with international benchmark Brent crude settling 0.3 per cent lower at $109.55 a barrel after falling as low as $106.82 earlier in the day."}],[{"start":181.94,"text":"The relief for AI stocks on Monday was also felt earlier in the day in Asia, where South Korea’s Kospi, which is dominated by AI chipmakers Samsung Electronics and SK Hynix, rose 1.8 per cent after ending last week down 14 per cent."}],[{"start":197.68,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1792465631_7527.mp3"}