IXIC: Nasdaq Rebounds as AI Rally Spreads Across Asia, Anthropic IPO Stirs Buying

Technology stocks recovered before major company earnings reports and the Federal Reserve's decision. However, Brazil's stock market selloff, high oil prices and Bitcoin's weakness show that the global recovery is uneven.

📈 Hope for AI brings stock buyers back

• The Nasdaq Composite rose 0.8% to 26,169.38 on Monday, leading gains on Wall Street as investors returned to popular technology stocks. The S&P 500 gained 0.7% to 7,676.77, while the Dow rose 146 points, or 0.3%.
• Early trading on Tuesday suggested that stocks could rise again. Nasdaq-100 futures gained 0.4%. These futures track the Nasdaq's largest nonfinancial companies, not the entire Nasdaq Composite.
• Anthropic's public filing for an initial public offering (IPO) helped restore confidence in demand for AI. However, its financial results need to be read carefully. The company that makes Claude reported a net loss of $80.7 billion in the first half of the year. Most of this loss came from accounting effects related to securities that can be converted into other types of securities.

💸 Different stocks move in different directions

• Stock movements showed that investors are still choosing carefully where to put their money. Nvidia rose 2.4%, while Meta fell 1.9% after outlining a plan to raise up to $95 billion by selling equity.
• Nvidia, AMD and Broadcom showed interest in buying shares. This could help pay for future chip purchases, but it also raises questions about suppliers investing in the customers who buy their products.
• Tesla rose 5.2% after Barclays raised its rating to Overweight and increased its price target from $370 to $450. Barclays pointed to growing business strength and the possibility of a combination with SpaceX. Celestica, a company that works with data centers, also gave investors a positive sign about AI demand. Its quarterly sales jumped 83%, and it predicted that revenue would grow 90% in 2027.

🌏 Asian stocks rise while Brazil's market falls

• South Korea's Kospi rose more than 4%, while Japan's Nikkei gained 1.9% in early trading on Tuesday. These sharp gains continued the recovery in technology stocks across Asian markets.
• European stock futures were less positive and edged down. This shows that renewed interest in chip stocks does not necessarily mean investors are more confident in every market.
• Brazil showed the biggest contrast. The Bovespa stock index plunged 13.9% on Monday, its worst day since March 2020, following Lula's reelection. Trading was briefly stopped as investors reconsidered government spending and debt. The Brazilian real ended the day down 8.1% against the US dollar.
• Brent crude oil prices fell slightly toward $115 a barrel, offering some relief but not solving the inflation problem. At Monday's close, the oil benchmark was still almost 12% higher for October.

🏦 Interest rates are the next big test

• The US dollar remained strong as traders prepared for central banks to announce their decisions. The USD/JPY exchange rate was near 157.70 ahead of Friday's Bank of Japan meeting, where officials are expected to leave rates unchanged. The main question is whether they will give stronger signals that they may raise rates in December.
• Gold prices slipped toward $4,010 an ounce, while Bitcoin remained around $80,000. An early snapshot on Tuesday put Bitcoin just below that level.
• It is worth watching that cryptocurrencies have not recovered as strongly as stocks. Growing interest in technology shares has not yet led to an equally clear recovery in digital assets.

💰 Major events are coming

• The Federal Reserve will announce its decision on Wednesday, the biggest economic event of the week. Investors will focus not just on the current economy but also on what the decision may mean for future interest rates.
• Microsoft and Alphabet report earnings on Wednesday, followed by Amazon on Thursday. Investors will examine cloud business growth, spending on AI and the amount of cash these companies generate.
• Thursday will also bring US GDP figures, PCE inflation data and the European Central Bank's decision. The Bank of Japan will follow on Friday. The market recovery now faces a busy period: company earnings must support expectations for growth, while inflation figures will help show whether central banks can afford to pause interest rate increases.