Global Markets Divide as AI Rally Lifts U.S. Tech, Weighs on Yen

Global equity markets delivered divergent performances on Monday, as gains in U.S. artificial intelligence stocks fueled a rally on Wall Street but failed to sustain momentum worldwide. The S&P 500 (SPX) rose 1.2%, propelled by a 5.3% surge in NVIDIA (NVDA), which reported stronger-than-expected data center revenue and confirmed expanded AI chip supply. The Nasdaq Composite (NQ) advanced 1.7%, with Tesla (TSLA) climbing 4.8% after unveiling new autonomous vehicle software updates and a revised production forecast. Despite the U.S. tech surge, European and Asian benchmarks showed modest gains or losses. The FTSE 100 gained 0.3%, while Japan’s Nikkei 225 slipped 0.6% amid concerns over the Bank of Japan’s delayed rate hike. The yen (JPY/USD) weakened by 0.9% to 153.45 per dollar, its lowest level since October, as investors rotated into higher-yielding assets following the U.S. technology rally. This reflects broader capital reallocation toward growth-oriented tech sectors and away from traditional safe-haven currencies. The strength in AI-focused equities underscores the continued market premium on innovation-led growth. NVDA’s market cap now exceeds $2.3 trillion, reinforcing its leadership in semiconductor and AI infrastructure. Meanwhile, TSLA’s stock has climbed 18% year-to-date, supported by robust demand for its electric vehicles and energy storage products. These trends signal investor confidence in long-term technological disruption, even as macroeconomic uncertainty persists. The divergence in global performance highlights the growing impact of sector-specific momentum on international markets. Investors are increasingly pricing in AI-driven productivity gains, which may influence central bank policies and currency valuations in the months ahead, particularly in Japan and the Eurozone.