Technological recovery in global markets

Nvidia launched an investigation following reports that CEO Huang had a relationship with a person suspected of spying for China.

Although this news created some pressure on technology stocks, the new week started with a positive risk appetite.

On Friday, reaction buying came to the fore in US markets after the sharp sales in technology stocks the previous day. With dip buying and closing short positions, Nasdaq 100 rose 1.35 percent, while semiconductor stocks gained 4.2 percent.

The recovery in technology stocks also supported the S&P 500. On the other hand, strong US employment data and the increase in consumer confidence pointed out that the economy maintained its strong course and strengthened the expectations that the Fed would raise interest rates in December.

As a result, US bond yields and the dollar rose. Although technology stocks rebounded, concerns about the potential for tightening regulations on artificial intelligence and the sustainability of high artificial intelligence spending remained after the Democrats' midterm election victory.

Futures indices point to an upward opening in the new week. Although the investigation initiated against Nvidia CEO Huang initially reduced Nasdaq 100 futures by up to 1 percent, the losses were quickly reversed. The expectation that existing and approved data center investments will continue to support chip demand came to the fore.

A strong recovery was effective in Asian markets, led by technology stocks. Following last week's harsh artificial intelligence sales, the reaction buying that started in US technology stocks on Friday also moved to Asia. While the MSCI Asia Pacific Index increased by 2.4 percent, Taiwan Taiex gained 6 percent and Japan's Nikkei 225 gained 3.4 percent. With the recovery in risk appetite, safe haven demand weakened and US bonds fell for the second day.

The 10-year bond yield increased by 2 basis points to 4.88 percent. The dollar lost value against most G-10 currencies. The next main agenda for the markets this week will be Tuesday's US inflation data. Following last week's strong economic data, the market is pricing in a nearly 80 percent chance of a rate hike from the Fed by the end of the year.