Global stocks rally on strong earnings despite AI concerns

Summarised from 2 outlets · Updated 21 Oct, 12:08 · Archive

Global stocks have risen as companies report strong profits, though concerns about artificial intelligence spending persist.

Global stocks have nudged up as early earnings reports point to strong profits for companies worldwide, shoring up sentiment despite concerns about the strength of the artificial intelligence trade and turbulence in government bonds. With 13 per cent of S&P 500 companies reporting, 86 per cent have beaten earnings estimates according to LSEG data.

Asian stocks rallied about one per cent, led by a three per cent gain in Korea, while Japan's Nikkei 225 rose almost one per cent. European markets were broadly higher in early Wednesday trade, and US stock futures pointed to a positive open for Wall Street ahead of earnings reports from Meta and Tesla.

However, sentiment towards artificial intelligence stocks remains mixed. Australian data centre operator NextDC shed nearly half its market capitalisation after sharply cutting revenue forecasts and putting future developments on hold. In contrast, South Korean artificial intelligence infrastructure company Elice Group surged almost 30 per cent, rebounding from a slump in its market debut.

Neil Fisher, an investment specialist at St James's Place in London, noted that markets have positively responded to strong earnings overall in 2026, 'where they have not always responded positively to stronger earnings, especially on the AI side of things, is when further capital expenditure and spending on AI gets put on the table'.

How it is being reported

• Stocks eke out modest gains thanks to earnings cheerAsian stocks have rallied and European shares have been broadly higher as investors take heart from positive signs from earnings season.Perth Now · 21 Oct, 11:25
• Stocks eke out modest gains thanks to earnings cheerAsian stocks have rallied and European shares have been broadly higher as investors take heart from positive signs from earnings season.The West Australian · 21 Oct, 11:25

In this story: Meta · Tesla · NextDC · Elice Group · St James's Place · Korea · Japan · Australia

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