Global shares recover on AI rebound; Nvidia slides ahead of US opening

• European shares and US stock futures rose on Monday as technology stocks recovered from last week’s sell-off, with Taiwan leading Asian gains

• Nvidia fell 4.1 per cent in premarket trading after announcing an investigation into reports that chief executive Jensen Huang was targeted by foreign intelligence

• Oil prices declined, while investors assessed the implications of Democratic election victories for AI investment and the US economy

Global equities regained ground on Monday as a recovery in artificial intelligence stocks helped lift markets following last week’s sharp sell-off. Nvidia, however, came under renewed pressure after announcing an investigation into reports involving its chief executive.

Taiwan led the advance in Asia, while European benchmarks opened higher and US stock futures pointed towards gains on Wall Street. Investors continued to assess how sweeping Democratic victories in the US midterm elections could affect technology investment and the wider economy.

In early European trading, Germany’s DAX rose 0.6 per cent to 25,974.42. France’s CAC 40 gained 0.4 per cent to 8,168.36, while Britain’s FTSE 100 advanced 0.4 per cent to 10,720.81.

Futures tracking the S&P 500 increased 0.3 per cent, and Dow Jones Industrial Average futures climbed 0.6 per cent.

Taiwan’s Taiex surged 4.9 per cent, supported by a 4.7 per cent rebound in semiconductor manufacturer TSMC. The gains followed Friday’s recovery in US technology shares, which offered some relief after heavy selling earlier in the week.

Concerns about the outlook for AI infrastructure spending have contributed to the volatility. Investors fear the US election results could complicate the expansion of data centres, particularly in Texas, amid public unease about AI and the impact of power-hungry facilities on electricity bills.

Japan’s Nikkei 225 closed 2.3 per cent higher at 58,775.50. Semiconductor equipment manufacturer Tokyo Electron gained 2.8 per cent, although it surrendered some earlier gains, while chip-testing equipment maker Advantest rose 1.3 per cent.

SoftBank Group moved against the broader trend, falling 4.2 per cent as it sought to salvage a $5.4 billion robotics deal with Switzerland’s ABB following its rejection by Chinese regulators.

South Korea’s Kospi also lost momentum, reversing an early advance to finish 0.8 per cent lower at 5,018.85. Samsung Electronics rose 0.6 per cent and SK Hynix gained 0.4 per cent, modest moves after weeks of volatile trading in AI-linked shares.

Hong Kong’s Hang Seng slipped 0.1 per cent to 24,448.95, while the Shanghai Composite added 0.3 per cent to 3,660.79. Australia’s S&P/ASX 200 edged up 0.1 per cent to 9,029.70.

The recovery followed a turbulent week on Wall Street. On Friday, the S&P 500 gained 0.3 per cent, reducing its weekly decline to 2.7 per cent. It was still the index’s worst week since President Donald Trump’s April 2025 tariff announcement unsettled global markets.

The Nasdaq Composite rose 1.1 per cent on Friday, while the Dow fell 0.5 per cent. The partial recovery followed Thursday’s US market slide, which helped trigger falls of about 6 per cent in Tokyo and Seoul.

Nvidia was the largest contributor to Friday’s S&P 500 advance, rising 2.8 per cent after successive declines of 9.3 per cent and 3.2 per cent.

By early Monday, however, its shares were down 4.1 per cent in premarket trading.

The chipmaker said on Sunday that it was opening an investigation into reports that chief executive Jensen Huang had been targeted by a foreign intelligence operation. Huang acknowledged an intimate relationship with a business executive whom US intelligence officials reportedly believed was gathering information for China, according to The New York Times.

China’s Foreign Ministry rejected the espionage accusations at its regular briefing on Monday, describing them as a smear campaign against Beijing.

The scrutiny adds uncertainty around a company central to the AI investment boom. Nvidia’s processors power systems used to train and operate AI models, while its most advanced chips have been subject to US export restrictions intended to limit China’s access to sensitive computing technology.

Stephen Innes of SPI Asset Management said the controversy extended beyond Huang’s personal conduct to questions involving American technological leadership, China and national security.

Despite the recent market swings, the S&P 500 remained 5.7 per cent below the record high it reached last month.

Economic data offered some reassurance. A report released on Friday showed that US employers added substantially more jobs last month than economists had expected, suggesting the economy remained resilient despite high inflation.

Oil prices fell in early Monday trading. Brent crude, the international benchmark, dropped 2 per cent to $96.38 a barrel, while US benchmark crude declined 1.5 per cent to $89.56.

In currency markets, the dollar weakened to 158.09 yen from 158.36 yen late on Friday. The euro strengthened to $1.1188 from $1.1142.

With PTI inputs