As Tech Giants Increase AI Spending, Stocks Rise – Europe Market Wrap
US stocks resumed their upward trend as technology megacaps increased investment to build up the infrastructure that powers AI. Gold and silver prices reached all-time highs.
Contracts for the S&P 500 and Nasdaq 100 recovered losses to gain 0.2%. Meta Platforms Inc., one of the first AI giants to declare, claimed it will invest up to $135 billion this year, much exceeding predictions of around $110 billion. Its stock climbed about 8% in premarket trade after reporting a better-than-expected sales forecast.
In contrast, Microsoft fell 6.6% as its own intentions for more investment were met with slower growth in cloud sales. AI processing and storage capacity manufacturers, such as Sandisk, Micron, and Western Digital, all increased by 1.5% or more.
Gold surpassed $5,500 per ounce as precious metals continued their scorching surge. Silver has increased its year-to-date gain to over 63%. Copper prices rose by the greatest in 16 years, fuelled by a wave of speculative trade in China.
Brent crude prices rose to $70 per barrel for the first time since September, after Trump threatened Iran to reach a nuclear agreement or face military attacks. Treasuries declined on concerns that rising commodity costs may contribute to inflation.
