Technological recovery in global markets

Nvidia launched an investigation following reports that CEO Huang had a relationship with a person suspected of spying for China.

The harsh sales wave in global technology markets gave way to a rapid recovery process. Dip buying and closed short positions, which came into play on the last trading day of the week in the United States stock markets, relieved the selling pressure and gave technology stocks a breather. This upward momentum, which started on Wall Street, also moved to Asian markets at the beginning of the new trading week, creating a global buying wave.

Chip and Technology Rally in Stock Exchanges in Numbers

While the Nasdaq 100 index gained 1.35 percent in the US session, there was a strong increase in the shares of semiconductor manufacturers at 4.2 percent. This technology-focused rise also provided direct support to the S&P 500 index. The positive mood was felt more harshly in Eastern markets; While the MSCI Asia Pacific Index increased by 2.4 percent, Taiwan's Taiex index, which is the center of hardware production, made a remarkable jump of 6 percent. As we entered the new week, although the news of the investigation launched against Nvidia CEO Huang in futures transactions caused an instant 1 percent retreat in Nasdaq 100 futures, the market quickly compensated for these losses and turned its course upward again.

Artificial Intelligence Spending and the Tightening Balance of Control

While the recovery on the hardware side continues, industry components are trying to balance with macroeconomic pressures and legal processes. Following the Democrats' midterm election victory, concerns that legal regulations for the artificial intelligence ecosystem may tighten and the sustainability of huge R&D expenditures remain on the table. Simultaneously, strong employment and consumer confidence data released in the USA strengthened the possibility that the Fed might raise interest rates in December, pushing bond yields and the dollar up. Despite this tightening on the financial front, the uninterrupted continuation of approved data center projects on the corporate side stands out as the main factor that keeps the physical demand for advanced chip hardware alive.