Symbolic imageAsian and European stocks rebound after AI selloff, but caution remains
Asian markets and the Dax recovered on Monday after last week's AI-driven selloff. Bloomberg reports that Citi strategists cut US stocks and that hedge funds are dumping tech at a near-record pace.
Two hours into Monday trading, Japan's Nikkei 225 was just over 3 percent higher and South Korea's Kospi 1.2 percent, with Samsung Electronics up 2.6 and SK Hynix 3.7 percent, Handelsblatt reports. The Hang Seng gained about 0.7 percent and the CSI 300 almost 0.5 percent, while the Dax stood 0.6 percent higher at 25,970 points after its first hour. The selloff followed the Democrats' win in the US midterms, which investors read as a possible political brake on AI expansion; the S&P 500 lost almost 3 trillion dollars in market value on Thursday alone. The Financial Times says last week's declines had pushed many indices into bear market territory.
Nvidia under pressure, oil eases
Nvidia's board opened an independent investigation after reports of a possible Chinese espionage attempt around CEO Jensen Huang, according to Handelsblatt, which sees stricter US chip export curbs as the larger risk for the stock. Wall Street still opened higher, and Brent fell after Donald Trump called renewed major fighting against Iran "highly unlikely" while talks make progress.
Citi downgrade and debt worries
Bloomberg headlines say Citi strategists cut US stocks and upgraded Europe, and that AI developers face a 2027 rate shock after a $1 trillion debt binge. Only the headlines were available, so details are unconfirmed here.