Global stock markets saw a largely positive trend on Monday, driven by a significant artificial intelligence deal that boosted the tech sector. The fresh major AI deal fueled a rally in tech stocks, with investors starting November on a strong note following an upbeat end to October. This optimism was attributed to easing China-US tensions, a cut in US interest rates, and healthy earnings from major technology companies, including Amazon.
The tech and AI theme remains a dominant force for investors as the year draws to a close, according to Kathleen Brooks, research director at trading group XTB. The positive momentum from last week carried over into the new week, with fresh news driving AI stocks higher. Wall Street experienced an uptick, with the tech-heavy Nasdaq Composite adding 1 percent.
Amazon’s shares jumped 4.9 percent after OpenAI, the maker of ChatGPT, signed a $38 billion deal with Amazon’s AWS cloud computing arm. This deal will provide OpenAI with access to computing resources, including hundreds of thousands of state-of-the-art Nvidia GPUs, a crucial component in the generative artificial intelligence revolution. As a result, shares in Nvidia, whose chips are key to many companies’ AI growth, rose 3 percent.
Nvidia’s performance was also attributed to a report by the Financial Times stating that the United States will allow Microsoft to ship Nvidia semiconductors to the United Arab Emirates for the first time. Nvidia’s shares have seen a significant increase of over 50 percent since the start of the year.
In Europe, Frankfurt led the gains, rising 0.9 percent in afternoon deals. European carmakers saw their shares rise after China exempted some Nexperia chips from an export ban. This decision helped alleviate concerns over chip shortages, which had been a point of anxiety for the industry.
Shares in German automakers Mercedes-Benz and Volkswagen gained 2.1 percent, while global automaker Stellantis saw its shares rise by 1.5 percent in Paris. Ryanair’s shares climbed 3.2 percent after the airline announced a 20-percent gain in quarterly profit due to increased ticket prices.
In Asia, Seoul’s market reached a fresh record-high, with a 2.8 percent gain, as investors welcomed a thawing of ties between South Korea and China. Meanwhile, Tokyo’s market was closed for a holiday. Investors are keeping a close eye on new trade developments after US President Donald Trump and Chinese President Xi Jinping agreed on a deal to ease China’s rare earth curbs and lower US tariffs.
The OPEC+ alliance’s decision to lift output in December and then hold production steady in the first quarter of 2026 led to a slight increase in oil prices. Key figures at around 1430 GMT showed a mixed trend, with the Dow up less than 0.1 percent, the S&P 500 up 0.5 percent, and the Nasdaq Composite up 1.0 percent. The euro/dollar exchange rate was down at $1.1509, while the pound/dollar rate was also down at $1.3117.
The significance of these developments lies in their potential to shape the trajectory of global markets as the year draws to a close. As investors continue to navigate the complex landscape of international trade and technological advancements, these trends will be closely watched for their implications on the global economy.