World stocks rose Wednesday after strong earnings and renewed enthusiasm for technology shares pushed Wall Street to record highs a day earlier. Nasdaq and S&P 500 futures pointed to a higher open, and Japan's Nikkei jumped on fresh evidence of heavy AI infrastructure spending. Chipmaker AMD fell in premarket trading despite beating earnings estimates, while satellite company SpaceX also dropped on capital-spending worries, as investors watched for progress in Mideast peace talks.
S&P 500 futures build on a record close
World stocks rose Wednesday after robust earnings and renewed enthusiasm for technology shares pushed Wall Street to record highs the previous day. Nasdaq futures rose 0.2%, while S&P 500 futures added 0.5% after the benchmark index hit all-time highs on Tuesday.
European shares also inched up, with the pan-European STOXX 600 index last up 0.3% as investors awaited signs of progress in the U.S.-Iran negotiations. Fresh evidence of heavy AI infrastructure spending helped lift Japan's Nikkei 3.7% to its highest level since July 23.
South Korea's market, meanwhile, closed 3.8% higher in a continued volatile run. MSCI's broadest index of world shares rose 0.4%.
AI spending cuts both ways for chipmakers
But the upbeat mood didn't extend to every AI name. Chipmaker AMD fell 7% in premarket trading after dropping 8.8% in after-hours dealing, as results that beat analysts' estimates still fell short of investors' lofty expectations. AI and satellite company SpaceX dropped 10% in premarket trading on worries that heavy capital spending was eating into its cash flow.
That has been a recurring concern for AI stocks given the vast cost of compute power, and borrowing costs for the sector keep rising. Chris Weston, head of research at Pepperstone, said SpaceX continues to execute well operationally, but added "additional capital will almost certainly be required over the medium to longer term."
Mideast progress eases yields, lifts oil
Sentiment also drew support from hopes for progress on opening the Strait of Hormuz. President Donald Trump said his administration had very good discussions with Iran during all-day negotiations, fueling hopes the five-month conflict could be nearing an end.
Brent crude rose more than $1, or 1.26%, to $80.34 a barrel, a long way from its July peak of $102. U.S. crude edged up 14 cents to $76.24 after reports of attacks on a Saudi Arabian vessel in the Red Sea.
Qatar said mediators were making progress in efforts to end the U.S.-Iran war, though details were lacking. John Oh, an energy economist at CBA, said flows through the Strait of Hormuz have proven more resilient than first thought, reaching an estimated 40% to 45% of pre-war levels last week based on ship-tracking data.
That backdrop eased inflation fears and boosted bonds, pushing 10-year Treasury yields down to 4.627%, from last week's high of 4.747%.
Source: Reuters
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