Business & Finance

Tech‑Led Gains Push Global Markets Higher as AI Bets Remain Strong

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Tech‑Led Gains Push Global Markets Higher as AI Bets Remain Strong
Photo: A general view shows the floor of the New York Stock Exchange in New York on October 16, 2026 [File: Yuki Iwamura/AP Photo]

Global stock markets climbed on Tuesday as investors continued to bet on the prospects of the technology giants driving the AI boom. In the United States, all three major indexes advanced: the Nasdaq Composite rose 1.18 percent, the S&P 500 gained 0.6 percent, and the Dow Jones Industrial Average edged up 0.03 percent. Five of the “Magnificent Seven” tech stocks posted gains, led by Tesla, which climbed 4.04 percent. Amazon added 1.61 percent, while Apple and Alphabet rose 0.93 percent and 0.9 percent, respectively. Nvidia, the world’s most valuable public company, increased almost 1 percent after announcing a $3 billion investment in Meta’s equity offering. Meta fell 1.64 percent and Microsoft slipped 0.24 percent. Other notable tech moves included Advanced Micro Devices up 5.45 percent, Broadcom up 4 percent, and Intel up 3.61 percent.

Asian markets also rallied. The KOSPI in Seoul led gains, up 5.84 percent as of 03:00 GMT, spurred by SK Hynix’s blockbuster third‑quarter results, which saw operating profit surge about 630 percent year‑on‑year to 83.33 trillion won ($62.8 billion). SK Hynix shares jumped more than 8 percent after the announcement. In Tokyo, the Nikkei 225 was up 1.26 percent, while the TAIEX in Taipei rose 1.32 percent. The S&P/ASX 200 in Sydney advanced 0.11 percent.

Investors are awaiting earnings reports from major tech players to assess whether their large AI investments will yield returns. Microsoft and Alphabet will report on Wednesday, followed by Amazon on Thursday and Apple on Monday. On Monday, AI company Anthropic filed IPO paperwork, reporting a net loss of $80.7 billion in the first half of 2026 on $16.3 billion in revenue.

Tech firms have invested hundreds of billions of dollars in AI infrastructure, raising concerns about a potential speculative bubble similar to that before the 2000 dot‑com crash. Gartner forecasts global AI investment to reach $2.7 trillion in 2026 and $3.6 trillion in 2027.

Oil prices, elevated since the start of the US‑Israel war over Iran, rose about 1 percent as Asian markets opened on Wednesday amid ongoing Middle East conflict, including hostilities between Saudi Arabia and Yemen’s Iran‑aligned Houthis. Brent crude futures were trading around $115 a barrel, up 59 percent from before the war began.

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