Global stocks rally as AI optimism lifts markets ahead of Big Tech earnings

# Global Markets Rise as AI Optimism Supports Technology Stocks

Global stock markets advanced Wednesday as investors remained confident in the growth potential of artificial intelligence, with strong technology earnings and major investment announcements helping sustain market enthusiasm. However, declines in European shares, rising oil prices and uncertainty surrounding central bank decisions continued to weigh on sentiment.

The MSCI All-Country World Index rose 0.2%, while US stock futures gained between 0.1% and 0.4%. In Europe, the STOXX 600 slipped 0.25%, pressured by financial stocks as investors awaited monetary policy announcements and monitored escalating tensions in the Middle East.

## Asian Markets Lead Gains

Asian markets recorded stronger advances, led by South Korea’s KOSPI, which closed 6.63% higher following a sharp rise in third-quarter operating profit at SK hynix.

The memory chipmaker reported operating profit of 83.33 trillion won, equivalent to approximately $62.8 billion, representing an increase of more than seven times compared with the same period a year earlier. SK hynix shares jumped 10.89% after the results were announced.

Japan’s Nikkei 225 climbed 1.08%, while Taiwan’s TAIEX gained 2.04%. Hong Kong’s Hang Seng Index was trading 0.33% higher shortly before the market closed.

The gains followed a positive session on Wall Street on Tuesday, when investors continued to favour technology companies amid expectations that spending on AI infrastructure and services would remain substantial.

## Wall Street Advances on Technology Strength

The Nasdaq Composite, which has a heavy concentration of technology stocks, rose 1.18% to close at 26,477.81. The S&P 500 advanced 0.6% to 7,722.60, while the Dow Jones Industrial Average edged up 0.03% to 52,377.57.

Among major technology companies, Tesla shares gained 4.04%, Amazon rose 1.61%, Apple advanced 0.93% and Alphabet increased 0.9%.

Nvidia, the world's most valuable publicly traded company, gained nearly 1% after announcing a $3 billion investment in Meta's equity offering. Meta shares fell 1.64%, while Microsoft declined 0.24%.

Dan Coatsworth, head of markets at AJ Bell, told *Al Jazeera* that the performance of AI-related stocks continued to serve as an indicator of broader investor sentiment toward the technology sector.

He said these shares tend to weaken when investors question whether the AI growth story is losing momentum and rise when enthusiasm for the technological transformation strengthens.

## Big Tech Earnings in Focus

Investors are looking to upcoming earnings reports to determine whether the enormous sums being invested in artificial intelligence are translating into meaningful business growth and returns.

Microsoft and Alphabet are scheduled to announce their results Wednesday after the US market closes. Amazon is expected to report on Thursday, followed by Apple on November 2.

Recent investment and funding developments involving Meta, SpaceX and Broadcom have also kept AI at the centre of market discussions. Anthropic's reported preparations for a potential initial public offering have added to investor attention surrounding the sector.

Despite the optimism, some market participants remain concerned that technology stock valuations may be running ahead of underlying business performance. Comparisons with the dot-com bubble of the late 1990s and the market crash that followed in 2000 have resurfaced as investors assess the sustainability of the current AI-driven rally.

Gartner forecasts that global spending on artificial intelligence will reach $2.7 trillion in 2026 and increase to $3.6 trillion in 2027, highlighting the scale of expected investment in the technology.

## Central Banks and Oil Prices Add Uncertainty

Alongside corporate earnings, investors are monitoring policy decisions from the US Federal Reserve, the European Central Bank and the Bank of Japan for indications of the direction of interest rates.

The Reserve Bank of New Zealand kept its benchmark interest rate unchanged at 2.75%, a decision that sent the New Zealand dollar lower.

Oil prices also moved higher as geopolitical uncertainty in the Middle East continued to influence energy markets. Brent crude futures rose above $115 a barrel, raising concerns that increased energy costs could intensify inflation and make monetary policy decisions more difficult.

The combination of strong AI-related earnings expectations and significant investment plans has supported global equities. However, the outlook remains sensitive to upcoming corporate results, central bank decisions, energy prices and whether companies can demonstrate that their AI spending is delivering sustainable financial returns.