Deutsche Bank strategists observed that US equities experienced a mixed session, with the S&P 500 declining by -0.32% due to weakness in the Magnificent 7 group, which fell by -0.90% [1]. Despite this, the equal-weighted S&P 500 index rose by +0.21% and reached a fresh record high, indicating resilience outside the mega-cap tech names [1]. After the US market closed, positive earnings and guidance from CoreWeave and Super Micro Computer (SMC) improved investor sentiment. CoreWeave shares surged by approximately +15% in extended trading following a stronger sales outlook and a smaller-than-expected net loss, while SMC rose by more than +7% after-hours as its Q3 sales guidance exceeded estimates [1]. These results boosted US equity futures, with S&P 500 futures up +0.10% and NASDAQ 100 futures up +0.21% [1].
The optimism extended to European markets, where the STOXX 600 posted a marginal gain of +0.01%, marking its seventh consecutive advance and reaching a new record. The DAX and IBEX 35 also set new records, rising by +0.26% and +0.20% respectively. However, the FTSE 100 and CAC 40 declined by -0.17% and -0.13% [1].
Asian markets followed the positive trend, with most major indices moving higher. The KOSPI jumped by +3.79%, marking its strongest daily performance in August. The Nikkei, CSI 300, and Shanghai Composite also advanced by +0.67%, +0.65%, and +0.32% respectively. The Hang Seng was an exception, falling by -1.17% [1].
Overall, strong AI-related earnings from CoreWeave and SMC have revived risk appetite and contributed to a broad-based rally across global equity markets, offsetting earlier weakness in mega-cap tech stocks [1].
CONCLUSION
Strong earnings from AI-focused companies CoreWeave and Super Micro Computer have lifted global equity sentiment, leading to gains across US, European, and Asian markets. Despite earlier weakness in the Magnificent 7, the broader indices reached new highs, signaling renewed risk appetite. The market reaction suggests investors are optimistic about the AI sector's growth prospects.