Global stocks rise on AI optimism; SK Hynix surges on strong results
World markets climb as investors bet on AI growth, with tech stocks leading gains across Asia and the US.
At a glance
- Global stock markets rose as investors bet on AI growth, with the Nasdaq up 1.18% and the S&P 500 gaining 0.6%.
- SK Hynix reported a 630% year-over-year surge in operating profit to $62.8 billion, sending its shares up over 8%.
- Asian markets climbed, with South Korea's KOSPI up 5.84%, while oil prices rose to $115 a barrel amid Middle East tensions.
Global stock markets rose on Wednesday as investors continued to bet on the long-term prospects of artificial intelligence, with tech stocks driving most of the gains.
In the United States, all three major indexes advanced on Tuesday, led by the Nasdaq Composite, which gained 1.18 percent. The S&P 500 rose 0.6 percent, while the Dow Jones Industrial Average edged up 0.03 percent. Among the "Magnificent Seven" tech stocks, Tesla led with a 4.04 percent gain, followed by Amazon (+1.61%), Apple (+0.93%), and Alphabet (+0.9%).
Nvidia, the world's most valuable public company, rose nearly 1 percent after announcing a $3 billion investment in Meta's equity offering. However, Meta fell 1.64 percent and Microsoft dipped 0.24 percent.
Asian markets extended their gains on Wednesday, with Japan, South Korea, Taiwan, and Australia all climbing. The KOSPI in Seoul surged 5.84 percent by 03:00 GMT, driven by strong quarterly results from SK Hynix, one of the world's top three memory chip makers. The company reported an 83.33 trillion won ($62.8 billion) operating profit for the third quarter, marking a roughly 630 percent increase year-over-year. SK Hynix shares jumped more than 8 percent following the announcement.
In Tokyo, the Nikkei 225 rose 1.26 percent, while Taipei's TAIEX gained 1.32 percent. Australia's S&P/ASX 200 added 0.11 percent.
Investors are now looking ahead to earnings reports from major tech firms, including Microsoft and Alphabet on Wednesday, Amazon on Thursday, and Apple on Monday, to assess whether AI investments will deliver returns.
Meanwhile, oil prices remained elevated, rising about 1 percent as Asian markets opened, with Brent crude futures trading around $115 a barrel—up 59 percent since the start of the US-Israel conflict with Iran.
Source: Al Jazeera
Questions and answers
- Why are global stock markets rising?
- Markets are climbing as investors continue to bet on the long-term potential of artificial intelligence, particularly among major tech companies.
- What drove South Korea's KOSPI surge?
- The KOSPI rose 5.84% after SK Hynix reported a 630% year-over-year jump in operating profit to $62.8 billion.
- How are oil prices affected by the Middle East conflict?
- Oil prices rose about 1% as Asian markets opened, with Brent crude futures at $115 a barrel—up 59% since the start of the US-Israel conflict with Iran.
