US stocks rebound while Europe falls on unrest
The Nasdaq rose more than 1 percent on Monday as tech shares rebounded ahead of a big week for AI-related earnings, while European stocks and the euro fell as unrest in France added to concerns about the country's fiscal outlook. French bonds and Paris-listed stocks also fell as the widespread protests across France underscored the difficulties the government faces in reducing its large deficit.…
On Monday, US stocks showed a rebound while European markets fell due to unrest in France. The Nasdaq rose by over 1 percent, benefiting from tech shares recovering ahead of AI-related earnings. European stocks and the euro, however, declined as protests in France amplified concerns about the country's fiscal situation. French bonds and Paris-listed stocks also saw a drop, reflecting the challenges the government faces in cutting its significant deficit.
Paris asked some local authorities to implement curfews amid security issues related to the protests.
Tech stocks on Wall Street experienced a rebound after a tough week, with a semiconductors index up 1.6 percent. Investors are closely watching Meta's earnings results on Wednesday, as well as Tesla and chipmakers Lam Research and Texas Instruments, which are due this week. The market is anticipated to undergo a crucial test in the upcoming two weeks as investors await big-name AI companies' earnings reports.
The Dow Jones Industrial Average dropped 36 points, or 0.1 percent, to 51,966, while the S&P 500 climbed 31 points, or 0.4 percent, to 7,690, and the Nasdaq Composite surged 290 points, or 1.1 percent, to 26,430. Meta is among five AI hyperscalers anticipated to boost their combined capital expenditure to around US$1.2 trillion next year, as per Goldman Sachs.
SpaceX's results are also slated for Tuesday. Overall, US earnings are expected to increase by approximately 30 percent, primarily fueled by the technology sector's growth.
US Treasury yields increased on Monday. The benchmark 10-year Treasury yield rose by 4.2 basis points to 5.14 percent, as concerns about the effect of higher interest rates on AI stocks eased. The yield on the US 10-year Treasury note was up 13 basis points to 4.9 percent, while Germany's 10-year yield also surged.
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