In brief
AI‑related shares fell 19% in the last month but rallied 4.8% globally on Friday, helping U.S. indices climb modestly. The Nasdaq jumped 0.4%, the S&P 500 advanced 0.1% and the Dow gained 0.4%, while Japan’s Nikkei rose 1.3%. Investors cite stronger corporate earnings and a firmer U.S. dollar as reasons for the rebound amid earlier fears of rate hikes. Asian markets were also cautious, with South Korea’s Kospi falling 7.4% earlier before the overall surge.
On Friday, AI‑related stocks that had cut 19% of their value in the past month stopped falling and rallied 4.8% worldwide, easing recent losses on Wall Street. The move lifted major U.S. indices: the Nasdaq Composite gained 0.4%, the S&P 500 climbed 0.1% and the Dow Jones Industrial Average rose 0.4%.
In Asia, the Nikkei 225 in Japan posted a 1.3% gain, while South Korea’s Kospi fell 7.4% earlier in the day. A conflicting report noted a 5.7% dip in the Nikkei before the rally. The discrepancy illustrates the volatility of technology stocks amid earnings uncertainty.
Market analysts say the rebound stemmed from optimism about corporate earnings and a stronger U.S. dollar, which weighed against earlier concerns that the Federal Reserve might keep interest rates high. The technology sector’s lift has helped calm investor sentiment, though traders remain wary of further rate hikes.
The tech group chart displayed an inverted “U” pattern, indicating a correction after a prior ascent. This shape suggests that AI companies have been fluctuating between rapid gains and sharp losses as investors reassess their value.
