AI STOCKS BOUNCE BACK AFTER BRUISING SELLOFF LAST WEEK

What happened: AI-linked stocks rebounded on Monday after last week's selloff, helped by lower Treasury yields and easing crude oil prices, while CoreWeave surged after a Goldman Sachs upgrade. Key numbers: CoreWeave CRWV-Q rose 3.4 per cent after losing more than a quarter of its value last week. Why it matters: The rebound follows concerns that heavily indebted AI companies could face higher borrowing costs after a hot inflation reading raised expectations for Fed rate hikes. Morgan Stanley expects total AI investment to reach US$1.6-trillion in 2027.

AI-linked stocks rebounded on Monday after last week's selloff, helped by lower Treasury yields and easing crude oil prices, while CoreWeave surged after a Goldman Sachs upgrade.

The rebound follows concerns that heavily indebted AI companies could face higher borrowing costs after a hot inflation reading raised expectations for Fed rate hikes. Morgan Stanley expects total AI investment to reach US$1.6-trillion in 2027.