Stock markets: After the AI sell-off: stock markets are stabilizing

Seoul/Tokyo/Frankfurt a.M.. After significant price drops in the previous week, the stock markets in East Asia and the DAX have recovered somewhat. The leading German index initially got off to a hesitant start, but after the first hour of trading it was up 0.6 percent at 25,970 points.

After a record high at the end of last week, the so-called “blue tsunami” also hit the Dax - a wave of sales in AI stocks in the USA after the Democrats' victory there in the midterm elections in the Senate and Congress. “Thanks to its low tech ratio, the DAX has gotten through this difficult phase comparatively well so far,” said portfolio manager Thomas Altmann from QC Partners.

The software company SAP had recovered from the penalty of being an “AI victim” since July. The share price reached its high for the year on Thursday. On Monday, the shares benefited from a recommendation from the US bank JPMorgan with a plus of 2.3 percent. The shares made up for their losses on Friday - but at 215.50 euros they remained below their annual high. The topic of AI is moving from the pilot phase into productive use in companies, wrote analyst Toby Ogg. It is finding its way into the central systems - such as the SAP software. At the same time, SAP's own AI offering is making progress.

The stock markets in East Asia recovered somewhat after the spectacular sell-off of shares in the AI ​​industry last week. At the beginning of the week, the Japanese leading index Nikkei 225 was up a good 3 percent two hours after the start of trading, while the South Korean Kospi was up 1.2 percent at the same time (11 a.m. local time). The memory chip producers Samsung Electronics and SK Hynix, which are important for the AI ​​supply chain, also started the trading week positively with 2.6 percent and 3.7 percent respectively.

The extraordinary AI sell-off on Wall Street also hit the stock markets in Asia hard at the end of last week. The background was concerns about the future development of the artificial intelligence business as a result of the Democrats' victory in the US midterm elections. Investors were no longer just concerned about whether billions in investments in the AI ​​sector would be worthwhile in the short term, but there were also fears about a political brake on expansion. On Thursday alone, companies in the broad US S&P 500 index lost a cumulative total of almost three trillion US dollars (2.7 trillion euros) in market value. The risk of rising oil prices due to the massively restricted shipping traffic through the Strait of Hormuz also dampened the mood among investors.