Global Markets Rally as AI Stocks Rebound: What’s Driving the Surge?

Global markets experienced a notable rally on Monday, driven by a rebound in artificial intelligence stocks. Major indices in Europe and Asia saw significant gains, with Taiwan's Taiex leading the charge. Investors are closely monitoring the implications of recent political victories on the economy and market dynamics. Nvidia, a key player in the AI sector, is under scrutiny following allegations against its CEO, impacting its stock performance. As the US economy shows resilience with strong job growth, the market remains optimistic despite recent fluctuations. Dive into the full article for detailed insights and analysis.

By Narendra Chaudhary Nov 9, 2026, 15:52 IST

Market Overview

World markets, along with US futures, saw an upswing on Monday as stocks related to artificial intelligence made a recovery from the previous week's declines.

In early trading across Europe, Germany's DAX index rose by 0.6% to reach 25,974.42, while France's CAC 40 increased by 0.4% to 8,168.36. The UK's FTSE 100 also saw a 0.4% rise, settling at 10,720.81.

Futures for the S&P 500 were up by 0.3%, and the Dow Jones Industrial Average saw a 0.6% increase.

In Asia, Taiwan's Taiex led the gains with a remarkable 4.9% jump, largely driven by a rebound in TSMC, a major player in the semiconductor industry, which surged by 4.7%.

Tech stocks in the region benefited from a rally in the US on Friday, where AI stocks rebounded after concerns arose that Democratic wins in the midterm elections could hinder the construction of AI data centers, particularly in Texas. Voters from all political backgrounds expressed concerns about AI and the rising energy costs associated with data centers.

Investors are keenly observing the implications of the Democrats' significant victories on the markets and the overall economy.

Trading commenced positively in Tokyo, with the Nikkei 225 index closing 2.3% higher at 58,775.50.

Tokyo Electron, a chip equipment manufacturer, saw its shares rise by 2.8%, although it had previously experienced larger gains earlier in the day. Advantest, known for its testing equipment, increased by 1.3%.

Conversely, shares of SoftBank Group dropped by 4.2% as the company worked to salvage a $5.4 billion robotics deal with Switzerland's ABB, which faced rejection from Chinese regulators.

In South Korea, the Kospi index fell back after an initial rise, decreasing by 0.8% to 5,018.85. Samsung Electronics gained 0.6%, while chipmaker SK Hynix rose by 0.4%. These gains were modest for companies whose stock prices have fluctuated significantly as investors reacted to AI-related stocks over recent weeks.

In other Asian markets, Hong Kong's Hang Seng index dipped by 0.1% to 24,448.95, while the Shanghai Composite index added 0.3% to reach 3,660.79.

Australia's S&P/ASX 200 edged up by 0.1% to 9,029.70.

On Friday, the S&P 500 rose by 0.3%, reducing its weekly loss to 2.7%, marking its worst performance since President Donald Trump's 'Liberation Day' tariffs in April 2025. The Dow Jones Industrial Average fell by 0.5%, while the Nasdaq composite increased by 1.1%.

This relative stability halted a global decline in stock prices, which had seen indexes drop by 6% in both Tokyo and Seoul following a significant drop on Wall Street on Thursday.

The S&P 500's biggest boost on Friday came from Nvidia, a chip company central to the AI boom, whose stock rose by 2.8% after experiencing declines of 9.3% and 3.2% in previous sessions.

Nvidia announced on Sunday that it would investigate reports suggesting CEO Jensen Huang was targeted by foreign intelligence efforts. This followed Huang's admission of a close relationship with a business executive, who, according to reports, was gathering information for China.

During a routine briefing on Monday, China's Foreign Ministry dismissed these spying allegations, labeling them as a smear campaign against Beijing.

Nvidia's stock fell by 4.1% in premarket trading on Monday.

As a key player in the AI development race, Nvidia's chips are essential for many data centers and computing systems that train and operate AI models. The company's advanced processors have also been a focal point of US export restrictions aimed at limiting China's access to cutting-edge semiconductor technology.

Stephen Innes of SPI Asset Management noted that the scrutiny surrounding Jensen Huang extends beyond personal matters, touching on the sensitive intersection of US technological leadership, China, and national security.

Despite recent fluctuations, the S&P 500 remains only 5.7% below its all-time high set last month.

A report released on Friday indicated that US employers added significantly more jobs last month than economists had anticipated, signaling that the US economy continues to perform well despite high inflation.

In early trading on Monday, Brent crude oil, the international benchmark, fell by 2% to $96.38 per barrel, while US benchmark crude dropped by 1.5% to $89.56 per barrel.

The US dollar decreased to 158.09 Japanese yen from 158.