US stocks end higher as AI shares stabilise

NEW YORK: Wall Street stocks bounced back from a shaky start after disappointing inflation data on Thursday (Oct 15), while pressure on artificial intelligence shares moderated somewhat following a battering of Asian tech shares.

US equities sold off early in day following a drubbing in Asia that saw Seoul’s Kospi dive more than eight per cent – leading to a brief trading halt – before slightly paring the losses.

Japan’s Nikkei sank nearly five per cent as unease over tech names following the Nasdaq’s nearly two-per cent fall on Wednesday. Analysts had cited worries over the risk surrounding some massive AI investments had prompted the selling.

But analysts said equities received some support from a pullback in US Treasury bonds despite hot inflation readings this week.

The retreat in yields suggests investors see “a good opportunity to take some money out of equity and rebalance it into fixed income,” said Tom Cahill of Ventura Wealth Management.

Tech investors were also cheered by comments from Nvidia CEO Jensen Huang expressing optimism about CoreWeave’s prospects after the data center operator faced heavy selling on Wednesday.

After dropping more than 15 per cent, CoreWeave rose six per cent Thursday, an increase that also gave support to semiconductor shares.