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- Anthropic files for IPO, Meta announces plans to finance $95B to support AI infrastructure, but investors remain cautiously optimistic as profitability concerns persist ahead of earnings reports by tech giants
By Burhan Sansarlioglu and Emir Yildirim
ISTANBUL (AA) - Global markets welcomed renewed artificial intelligence (AI) optimism that drove the recent tech rally, boosting risk appetite, while remaining cautious.
Claude developer Anthropic filed with the US Securities and Exchange Commission (SEC) to make its shares public, renewing hopes that interest in AI will be reignited.
Meta’s announcement that it plans to finance around $95 billion to support AI infrastructure investments and personal “superintelligence” also boosted market optimism.
Investors are still cautious due to uncertainty over the profitability of these massive AI investments.
Meanwhile, geopolitical developments continue to influence asset prices.
December-delivery Brent crude oil dropped 1% to $114.7 a barrel on Tuesday amid hopes for peace in the Middle East.
The US 10-year Treasury yield is trading down three basis points at 4.97% at the same time.
The US dollar is up 0.2% at 102.1 due to the euro’s ongoing decline amid risks, especially those from France.
Gold is trading down 0.5% at $3,995 per ounce amid high energy prices as inflationary pressures rise.
All eyes turned to the earnings reports from Amazon, Microsoft and Alphabet to gain insight into the scale and profitability of AI investments.
The New York Stock Exchange traded positively on Monday, driven by a tech rally, as Intel shares rose 4%, Micron Technology shares grew 3%, AMD shares increased 2.8%, Nvidia shares gained 2.4% and Broadcom shares were up 2.3%.
American indexes opened Tuesday with mixed results.
Meanwhile, European stock markets also traded higher on Monday, as credit rating agency Moody’s decision not to downgrade France’s credit rating positively impacted markets.
The mild nature of the street protests in France over the weekend also boosted risk appetite in European markets.
At the same time, Germany’s business climate index rose from 89.9 in September to 90.2 points in October, its highest level in three years, according to the ifo Institute.
The UK's FTSE 100 gained 0.72%, Germany's DAX 40 rose 0.91%, France's CAC 40 surged 0.83% and Italy's FTSE MIB 30 was up 1.29% on Monday.
European indexes opened Tuesday with mixed results.
Near Tuesday’s close, Asian markets traded mixed despite tech optimism.
South Korea’s economy posted a 1% quarterly gain, above expectations, following 0.6% growth in the second quarter.
China’s industrial profits surged 14.4% year-on-year in September, marking the fastest growth since June, driven by AI demand and rising prices due to tensions in the Middle East.
Japan’s Nikkei 225 rose 1.6% and South Korea’s Kospi grew 3.4%, while China's Shanghai Composite fell 0.1% and Hong Kong's Hang Seng was down 0.1%.
Burhan Sansarlıoğlu
