Markets Regain Fragile Calm After AI Whiplash and Tech Earnings Jitters
Market Overview and Key Drivers
A look at the day ahead in European and global markets from Jiaxing Li
Early Week Performance and Investor Sentiment
It has been an upbeat start to the week, with Asian shares rebounding and US equity futures edging higher, after the Democrats' sweeping midterm elections victory set off a chaotic week of AI-trade unwinding and whiplash.
Markets appear to be calming somewhat after Wall Street managed to end on a higher note on Friday. Dip buyers may have been encouraged to step back in ahead of a relatively light week for major macro events.
Tech Earnings and AI-Related Volatility
Fragile Optimism and Upcoming Earnings
Still, it would be too early to say markets are out of the woods - the fragile optimism will be put to the test by more tech earnings this week, including from cloud-computing firm CoreWeave, which has become a poster child for investor concerns about AI profitability amid massive build-out costs and a heavy debt burden.
Other Key Tech Announcements
Applied Materials and Cisco Systems are also due to release earnings this week. Nvidia's launch of a board probe into ...