Global stock markets showed mixed performance on Friday, with most indices rebounding after a tech-driven sell-off the previous day. The recovery was led by gains in Asian markets, particularly South Korea’s Kospi index, which surged 2.1% to 5,668.05, and Japan’s Nikkei 225, which rose 1.4% to 65,324.29. The rebound came as losses in AI-related shares moderated in the U.S., with investors reassessing the impact of artificial intelligence on the global economy.
In Europe, the FTSE 100 in Britain fell slightly by less than 0.1% to 10,836.46, while France’s CAC 40 and Germany’s DAX saw modest gains of 0.2% and 1% respectively. The positive sentiment was partly fueled by comments from U.S. Federal Reserve chair Kevin Warsh, who stated that AI could bring significant benefits to the global and U.S. economies. Warsh described AI as the most consequential change to the economy in his lifetime, highlighting its potential positive impacts.
Indonesia’s stock market, however, experienced a sharp decline, with the Jakarta Composite index plummeting more than 11%, its largest single-day drop since 1998. The sell-off was triggered by a warning from index provider MSCI that Indonesia’s classification as an emerging market would no longer be appropriate, raising concerns about capital flight. Meanwhile, oil prices remained elevated, with Brent crude falling 0.6% to $105.26 per barrel and U.S. crude down 0.9% to $97.11 per barrel, as global supply pressures persisted.
In the U.S., tech stocks showed signs of stabilization after recent volatility. AI cloud provider CoreWeave initially plummeted but ended the day 5.9% higher, while Nvidia closed 1.8% lower after an earlier loss. The S&P 500, Dow Jones, and Nasdaq all posted gains on Thursday, with the S&P 500 adding 0.3%, the Dow Jones jumping 1.1%, and the Nasdaq rising 0.1%. The U.S. dollar weakened slightly against the yen and euro, trading at 157.96 yen and $1.1255 respectively.