Stocks edged higher as investors rotated out of the artificial intelligence trade ahead of key tech earnings this week that will offer clues on whether the recent pullback has further to run.
Treasuries rose and oil declined. MSCI’s Asia Pacific equities gauge edged up 0.2%. While technology was the worst performer in the index, seven industry groupings in the benchmark advanced, led by energy and real estate.
Futures for the S&P 500 Index and the Nasdaq 100 Index erased earlier losses and rose 0.2%. European shares were set to open 0.4% higher.
The AI trade remained under pressure as the Kospi Index in South Korea fell 0.2%. Goldman Sachs Group Inc. strategists slashed their target for the benchmark by 25% as concerns over the artificial intelligence trade intensified.
Chinese AI model developers slumped, while chip-related stocks were the biggest losers in Japan’s Nikkei. Providing some support, global oil benchmark Brent dropped 1.9% from a six-month high to about $114.45 a barrel.
US President Donald Trump said it’s “getting to be decision time” on whether to reach a deal with Tehran or resume attacks as threats from Iran and the Houthis against Americans in the Middle East mount.
