Brief
AI stocks rebound on Wall Street as broader markets wobble, ASX futures point lower
Wall Street AI shares rose after a sharp sell‑off, while Australian market futures signal a decline.
By Felo News Desk · Published
Stocks in the artificial‑intelligence sector rose on Wall Street on Thursday, recovering part of the steep losses recorded last week, while most other US equities slipped and Australian futures pointed to a lower open, according to Stan Choe of the Sydney Morning Herald.
The S&P 500 gained 0.5 % after its worst week since June, and the Nasdaq Composite climbed 1.1 % on the strength of technology‑heavy AI names. By contrast, the Dow Jones Industrial Average was largely unchanged in early afternoon trade after moving between losses and gains.
In Australia, futures at 5:01 am AEDT indicated the ASX 200 would open down 74 points, or about 0.8 %. The Australian dollar was quoted at US 0.6981. European markets fell sharply, with major indexes in Paris and other cities slipping more than 1 % amid protests that could pressure government spending and bond markets.
AI stocks led the rally. CoreWeave, a cloud‑computing firm that rents AI chips, rose 2.8 % after tumbling 25.2 % the previous week. Nvidia added 1.3 % and was a key driver of the S&P 500’s gain, while SpaceX, which controls the xAI business, rose 0.8 % to US 147.26 per share. Elon Musk pledged to give one SpaceX share to every child in America next year, a promise made after Anthropic announced a 5 % allocation of its upcoming IPO shares to a public‑benefit fund.
Analysts expect upcoming earnings reports to clarify the strength of AI‑related spending. Meta Platforms, promoting its Muse AI agent, is slated to report quarterly results on Wednesday, and semiconductor equipment maker Lam Research will also release its earnings the same day.
Overall, analysts forecast a 29 % growth in earnings for S&P 500 companies from the prior summer, reflecting optimism about continued AI investment despite higher borrowing costs linked to rising Treasury yields.
Key facts
- AI stocks rose on Wall Street, with CoreWeave up 2.8% and Nvidia up 1.3%. (smh.com.au)
- The S&P 500 gained 0.5% while the Dow Jones was largely unchanged. (smh.com.au)
- ASX 200 futures pointed to a 0.8% opening decline, down 74 points. (smh.com.au)
- European indexes fell more than 1% amid protests that could increase government spending. (smh.com.au)
- Meta Platforms and Lam Research are scheduled to report earnings on Wednesday. (smh.com.au)
Sources
- [1] smh.com.au — originally reported as “Markets today: Wall Street AI stocks rebound, Europe falls; ASX set to decline”
