AI Optimism Staves Off Market Shock as Oil Prices Retreat

Global stock markets staged a recovery on Monday as AI optimism took center stage. The MSCI's All World index rose by 0.3%, while European shares gained 0.75%. US stock futures also advanced, with Nasdaq futures up nearly 1%.

The gains were driven in part by Intel shares rising 5.4% in premarket trading, Micron and AMD each gaining around 2%. Fresh data from South Korea showed that the country's exports during the first 20 days of September reached a record high, driven largely by strong semiconductor demand.

However, the market remains cautious about energy prices, inflation, and interest rates. Oil prices retreated towards $100 a barrel after rising above $109 last week, but Chris Beauchamp, IG chief market strategist, cautioned that the broader direction for oil prices remained higher.