S&P 500 Posts Biggest One-Day Gain in 7 Months, No Structural Reversal in AI Investment Cycle

Odaily: Asian stocks are poised to follow U.S. equities higher, buoyed by a sharp rebound in U.S. tech shares and a decline in international oil prices. Stock index futures in South Korea, Japan, and Taiwan all rose at least 2%, Australian equities gained 0.8% in early trading, while Hong Kong index futures were relatively subdued.

In the U.S., the S&P 500 rose 2.3% on Monday, its biggest one-day gain since April 8; a chip stock index climbed nearly 7%, driving the Nasdaq 100 up 3.4%. However, Nvidia shares bucked the trend, falling 4.3%. In commodities, Brent crude futures dropped nearly 6%, settling below $93 per barrel. U.S. President Donald Trump expressed confidence that the war with Iran is winding down, and market expectations for de-escalation in the Middle East pushed oil prices lower and eased inflation concerns.

Market analysts believe the prior tech selloff was more a position adjustment within AI investment trades rather than a structural reversal in the AI investment cycle. Nonetheless, concentrated investor positioning and elevated market expectations could still bring volatility. The market will next focus on U.S. October Consumer Price Index (CPI) data, with inflation expected to rise less than in September. (Bloomberg)