Stock prices mostly rose across global markets on Tuesday, driven by renewed investor interest in technology companies linked to artificial intelligence (AI), as markets awaited earnings reports from major technology firms and the US Federal Reserve’s interest rate decision.Major US stock indices advanced, with the Nasdaq Composite recording the strongest gains amid renewed enthusiasm for AI following Anthropic’s announcement of plans for an initial public offering (IPO) that could become the largest in history.Investors also welcomed Broadcom’s announcement of a new financing arrangement for AI investments.Markets are awaiting earnings reports this week from Microsoft, Alphabet and Amazon, as well as South Korean companies SK hynix and Samsung.”The fact that this five-year-old company [Anthropic] could soon launch a record-breaking IPO helped boost investor confidence following a particularly volatile period for AI-related companies,” said Trade Nation analyst David Morrison.Technology stocks had faced selling pressure for much of last week amid concerns that substantial investments in AI might not deliver sufficient returns and that heavily indebted companies could struggle with higher interest rates.However, market conditions have become more favourable for these companies this week.Broadcom shares rose 4% following a joint announcement by the company, Citi, Blackstone and Morgan Stanley of a $63 billion financing structure to develop new capabilities for Anthropic.London’s FTSE 100 index declined, weighed down by a 5.4% fall in HSBC shares after the bank’s earnings fell short of market expectations.Mercedes-Benz shares dropped 3.8% on the Frankfurt Stock Exchange after the carmaker lowered its annual forecast. Nevertheless, Frankfurt’s main stock index recorded a modest increase, while Paris stocks also advanced.Global oil prices declined as diplomatic efforts to resolve the conflict in the Middle East resumed and Israeli voters headed to the polls in parliamentary elections.On Tuesday, the Dow Jones Industrial Average edged up by less than 0.1% to 52,377.57 points, while the S&P 500 gained 0.6% to 7,722.60 points. The Nasdaq Composite rose 1.2% to 26,477.81 points.In Europe, London’s FTSE 100 fell 0.8% to 10,686.54 points, while Paris’s CAC 40 gained 0.7% to 7,887.14 points and Frankfurt’s DAX 30 advanced 0.7% to 25,590.77 points.In electronic trading on the New York Mercantile Exchange, West Texas Intermediate (WTI) crude oil fell 1.8% to $99.90 per barrel on Tuesday.Brent crude oil declined 1.7% to $113.88 per barrel in London.Natural gas prices at the Dutch Title Transfer Facility (TTF) exchange decreased by 0.6% to 96.06 euros per megawatt-hour.On currency markets, the euro weakened against the US dollar from $1.1174 to $1.1138 per euro.The British pound declined against the US dollar from $1.3342 to $1.3316 per pound, while the US dollar strengthened against the Japanese yen from 157.50 to 157.90 yen per dollar.The euro also weakened against the British pound, falling from 83.74 to 83.64 pence per euro.
Optimism returns to global stock markets as AI companies regain investor attention
