Global stocks rise as tech bounces after rout over AI worries

London's FTSE 100 and other global stock markets experienced a rebound on Friday, following a wave of selling driven by concerns about the artificial intelligence boom. Federal Reserve Chairman Kevin Warsh, speaking at the IMF and World Bank meetings in Bangkok, reassured investors that AI presented significant benefits to the global economy.

The tech sector saw an improvement, with SK hynix and Kioxia leading the gains in Seoul and Tokyo. European stock markets also rose in midday trading, with fewer tech giants to offset losses. Analyst Susannah Streeter noted that the AI trade had been pulled back following a reassurance from a major player. Nvidia's CEO, Jensen Huang, defended the company's investment in cloud infrastructure provider CoreWeave, which had seen a 15.5% drop in value due to heavy debt and soaring bond yields.

Warsh's speech further bolstered the market's confidence, stating that AI investment would drive prices up in the short term and yield long-term benefits. However, the Jakarta market suffered its heaviest loss since 1998 after MSCI deemed Indonesia's emerging-market status no longer suitable, sparking fears of foreign investment withdrawal.