Equity markets on both sides of the Atlantic recovered on Monday as renewed confidence in artificial intelligence (AI) drew buyers back into technology and semiconductor shares. Sentiment improved after Anthropic’s filing for a US initial public offering, while Meta fell after announcing plans to raise up to $95bn through equity financing to support its AI infrastructure expansion. In Europe, lower oil prices helped improve sentiment and Germany’s October Ifo Business Climate Index also improved.
How global markets performed on Monday
Gains were broad across the US and Europe, while Asia delivered a more uneven session. The sections below set out how each region traded.
US equities led by semiconductors
All three major US indices finished in positive territory. The S&P 500 added 0.70% to close at 7,676.77, the Nasdaq Composite rose 0.83% to 26,169.38 and the Dow Jones Industrial Average edged up 0.28% to 52,361.58.
Chipmakers outperformed. The Philadelphia Semiconductor Index jumped 2.8% and the broader technology sector gained 1.5%. Among individual names, Lumentum rose by roughly 8% and Coherent by around 6%, while Tesla advanced 5.2% after Barclays upgraded the stock.
European shares supported by easing oil
European markets also ended the day higher, with the Euro Stoxx 50 rising 1.0% and the STOXX Europe 600 gaining 0.8%. Cheaper oil lifted sentiment towards industrials, banks, carmakers and travel and leisure companies. Germany’s October Ifo Business Climate Index also improved, offering some encouragement on business confidence.
Mixed session across Asia
Performance in Asia was divided. Chinese equities moved higher, while markets in Japan and South Korea closed lower.
AI optimism meets the cost of building it
Monday’s session showed investors rewarding AI growth stories while scrutinising how that growth will be paid for. Anthropic’s IPO filing pointed to fast-rising revenue and strong demand for its AI services from enterprise customers, which helped restore confidence in the sector. At the same time, the filing underscored the substantial computing costs and financing requirements associated with developing advanced AI systems.
Meta’s announcement reinforced that point. The company plans to raise up to $95bn through equity financing to expand its AI infrastructure, and its shares fell 1.9% in response. The contrasting performances suggest the market is becoming more selective, weighing the growth potential of AI against the scale of capital expenditure required before those investments generate sustainable returns.
Futures, bonds, oil and currencies
Beyond equities, US futures edged higher, while bond yields were steady, oil prices softened and the US dollar firmed slightly. Each is covered in turn below.
US futures edge higher
US equity futures moved only marginally higher in early trading today after Monday’s recovery. Nasdaq 100 futures were up 0.21% and S&P 500 futures added 0.05%, while Dow futures dipped 0.03%. Such small moves suggest investors are not yet ready to build decisively on Monday’s gains, as they continue to evaluate the outlook for AI investment and wait for more corporate results.
Treasury yields hold near 5%
US Treasury yields were little changed, with the 10-year yield finishing just under 5%.
Oil eases for a second session
Crude prices declined for a second day running amid diplomatic efforts to reduce tensions in the Middle East and support negotiations to reopen the Strait of Hormuz. Brent crude slipped 0.6% to $115.15 per barrel and WTI fell 0.5% to $105.25. Even so, the possibility of further disruption to energy supplies remains a significant risk.
Dollar firms slightly against the euro
The US dollar gained marginally against the major currencies. EUR/USD eased 0.02% to 1.1172.
Corporate news shaped by AI infrastructure demand
AI infrastructure dominated company news, although several other deals and earnings updates also moved share prices. The developments are grouped below.
Semiconductor partnerships and pricing power
Applied Materials announced plans to raise its holding in BESI, the Dutch semiconductor equipment maker, from 9% to approximately 20%. The move deepens the partnership between the two companies in advanced chip packaging and hybrid bonding. Separately, TSMC was reported to be weighing price increases of up to 20% for advanced chip packaging, as demand continues to outstrip the capacity available.
Debt financing for AI hardware
Large financial institutions are also stepping in with significant debt financing for AI infrastructure. This includes a reported $63bn package supporting Broadcom’s AI chips and networking equipment for Anthropic. Taken together, these developments point to sustained demand for semiconductors, memory and related infrastructure. They also show that financing costs, capacity limits and the eventual return on these investments are becoming increasingly important considerations.
Deals, earnings and other company updates
Elsewhere, the corporate picture was mixed:
- DoorDash and Instacart: DoorDash was reported to be in advanced talks to acquire Instacart in a deal that could value the grocery delivery company at around $17bn. Instacart shares rose 7.9% while DoorDash fell 5%, reflecting different views on the proposed transaction and the regulatory hurdles it may face.
- JetBlue: JetBlue posted a wider than expected quarterly loss. Falling cash reserves and pressure on its bonds added to concerns about its financial health.
- Volkswagen: Volkswagen was reported to be considering a wider rollout of the electronic architecture it developed in China with Xpeng, which could have implications for its existing software partnership with Rivian.
- Verizon: Verizon lifted its full-year forecasts for subscriber growth and earnings following stronger customer additions, although revenue fell short of estimates.
What to watch on Tuesday
Today’s agenda combines US economic data with corporate results. Both are outlined below.
US economic releases
Tuesday’s US data will shed further light on consumer confidence, manufacturing and the housing market. Releases include durable goods orders, building permits, new home sales, house price data and the Conference Board’s Consumer Confidence Index for October. The Richmond Fed’s manufacturing and services surveys will add a regional view of business conditions. Together, these figures should help investors judge how resilient the economy remains and how far higher borrowing costs are weighing on households and businesses.
Earnings from Visa, Coca-Cola, HSBC and others
Company results remain a key focus, with Visa, Coca-Cola, HSBC, Novartis, Boeing, Seagate Technology, S&P Global, Corning, HCA Healthcare and Waste Management all due to report. Investors will be looking for signs of resilient consumer spending, steady margins and continued demand across industrial and technology businesses. Seagate’s update is especially relevant to the AI infrastructure theme, given the role data storage plays in expanding computing capacity.
So far, the earnings season has been encouraging. Based on the figures available in Monday’s market commentary, approximately 84% of S&P 500 companies that have reported have beaten earnings expectations. Whether companies can sustain profit growth and protect margins while costs remain elevated remains an important consideration.
Investment implications
Monday’s rebound was constructive, but it did not remove the risks that continue to shape markets.
AI-related demand remains strong, yet the growing scale of financing commitments and the uncertainty around how AI will be monetised mean that earnings quality, cash flow and capital discipline deserve close attention. Recent market gains have also been concentrated in AI-related companies, which makes diversification across equities and fixed income particularly important.
Oil prices are still elevated, and together with ongoing geopolitical uncertainty they continue to pose risks to inflation and economic growth.
Markets head into Tuesday on firmer ground after Monday’s recovery, but sentiment remains sensitive to news on AI investment, energy prices and corporate earnings. The immediate question is whether today’s economic data and company results can strengthen confidence in the earnings outlook without reviving concerns over inflation, financing costs or stretched valuations.
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