US stocks end higher as AI shares stabilise

US stocks concluded the trading session on a higher note on Thursday, thanks to stabilised artificial intelligence shares, following a shaky start due to disappointing inflation data. Early in the day, US equities experienced a dip after significant losses in Asia, with the Seoul's Kospi declining more than eight percent, leading to a brief trading halt.

The Nikkei in Japan also plummeted nearly five percent, influenced by unease over tech stocks after the Nasdaq's nearly two-percent drop on Wednesday. Analysts attributed the selling to concerns over risks associated with substantial AI investments. On Thursday, US wholesale inflation surpassed analysts' expectations, soaring by 6.3 percent year-on-year in September, primarily due to soaring petrol prices from the Iran war.

Despite the inflation data, equities found some support from a pullback in US Treasury bonds, indicating investors' potential shift from equities to fixed income. Nvidia CEO Jensen Huang's optimistic remarks about CoreWeave's prospects after the data center operator faced heavy selling on Wednesday also bolstered tech investors' confidence.

Following the initial drop of over 15 percent, CoreWeave surged by six percent on Thursday, providing support to semiconductor shares as well. The Philadelphia semiconductor index finished down but above its session low. Although the Nasdaq ended narrowly positive, the Dow Jones Industrial Average rose 1.1 percent, suggesting investors were rotating towards industrial sectors instead of technology.

In other markets, the US dollar weakened while US oil prices surged more than three percent following a significant drop in commercial inventories. However, Brent futures, the international crude contract, experienced a slight decline. The S&P 500 closed at 7,744, up 0.3 percent, the Dow Jones Industrial Average rose to 52,177, up 1.1 percent, while the Nasdaq reached 26,713, up 0.1 percent.