Global stocks get AI boost ahead of packed 48 hours
SPY•Global stocks rose 0.2% as renewed enthusiasm for AI lifted markets ahead of results from Microsoft and Alphabet and major central bank decisions. Brent crude gained about 1.2% after an attack on a Saudi refinery.
1. Stocks rise ahead of results
Global stocks rose on Wednesday, with MSCI’s All-World index up 0.2% as investors looked ahead to results from Microsoft and Alphabet. U.S. stock futures edged up 0.1% to 0.4%, while South Korea’s Kospi surged 6% after earnings from SK Hynix. Europe’s STOXX 600 fell 0.25%, weighed down by financial shares and an 11% drop in Adyen.
2. AI spending in focus
Investors are expected to scrutinize Microsoft and Alphabet’s results for evidence that they are monetizing AI investments. Kathleen Brooks of XTB said signs of weaker monetization or slower capital spending could have major repercussions for the AI trade. Funding announcements from Meta, SpaceX and Broadcom, along with Anthropic’s IPO filing, had supported renewed interest in AI.
3. Rates and oil move markets
The Reserve Bank of New Zealand held its policy rate at 2.75%, contrary to expectations for a hike, and the kiwi fell more than 1.3%. Investors also awaited decisions from the Bank of Canada and Federal Reserve. Brent crude rose about 1.2% to around $115 a barrel after an attack on a Saudi refinery.
