US stocks rebound with AI earnings test ahead; French markets tumble
SPY•The Nasdaq rose 1.52% and the S&P 500 gained 0.74% as technology shares rebounded ahead of major AI-related earnings. France’s CAC 40 fell 1.4% amid unrest and fiscal concerns, while oil prices eased.
1. US stocks rebound
The Nasdaq rose more than 1% in early trading as technology shares recovered ahead of a week of AI-related earnings. The semiconductor index gained 3.6%, after falling for eight consecutive days through Friday. The Dow rose 0.08%, the S&P 500 gained 0.74%, and the Nasdaq Composite added 1.52%.
2. Earnings in focus
Investors are watching results due this week from Meta, Tesla, Lam Research and Texas Instruments for signs that large investments in AI will pay off. Meta is among five AI hyperscalers expected to increase combined capital expenditure to about $1.2 trillion next year, according to Goldman Sachs. Overall, US earnings are still expected to rise about 30%, largely driven by technology.
3. France and commodities
French markets and the euro fell as widespread unrest added to concerns about the government’s efforts to reduce its large budget deficit. The CAC 40 dropped 1.4%, and France’s 10-year yield rose 13 basis points to 4.9%. US crude fell 0.77% to $100.63 a barrel, while Brent declined 1.49% to $108.20.
