- Tech stocks rise after last week's rout as oil prices fall
- US CPI data in spotlight as traders wager on December rate hike
- Nvidia and its CEO remain in the spotlight, tech stocks rebound
- Anthropic IPO seen as test of investor confidence in AI trade
Nov 10 (Reuters) - World stocks rose on Tuesday as a drop in oil prices after US President Donald Trump said he plans to hold off on new military strikes against Iran lifted sentiment ahead of US inflation data that could sway the near-term interest rate outlook.
Brent crude futures fell over 2%, dipping below the $90 per barrel mark for the first time since late August, as investors pinned their hopes on possible peace talks between the US and Iran.
lower oil prices helped ease some inflation concerns which have been on investors' radar since the US-Israeli war with Iran erupted at the end of February.
"The situation for Trump has changed politically with the midterms... that probably makes it more likely that he wants to come to an accord with Iran before he's held back by Congress," said Joost van Leenders, senior investment strategist at Van Lanschot Kempen Investment Management in Amsterdam.
The slump in oil prices helped lift stocks after last week's rout as a sweeping victory by Democrats in the US midterm elections fed concerns that new regulations could dent the durability of the AI trade.
Futures tracking the S&P 500 inched 0.1% higher after the cash index (.SPX), opens new tab clocked its biggest one-day jump since April on Monday and the tech-heavy Nasdaq (.IXIC), opens new tab closed 2.7% higher, its best day in over three months.
South Korea's KOSPI (.KS11), opens new tab rose 4.4%, while Japan's Nikkei (.N225), opens new tab gained 2.9%. MSCI's broadest index of Asia-Pacific shares (.MIAP00000PUS), opens new tab pushed 2% higher, moving away from the seven-month low it hit last week.
Earnings reports due this week from tech companies including CoreWeave (CRWV.O), opens new tab, a barometer of investor anxiety over AI, will be another test for markets as investors fret about the cost of the AI buildout and its profitability.
Meanwhile, details of Anthropic's blockbuster IPO, including plans by the AI company to raise nearly $70 billion, were briefly circulated to banks before being retracted late on Monday, according to emails seen by Reuters.
Claude operator Anthropic is expected to formally launch the roadshow on Tuesday, with pricing expected in the following week. A successful IPO is seen as critical for the AI trade, investors say, amid heightened scrutiny.
NVIDIA STILL IN FOCUS
Market focus remains on Nvidia (NVDA.O), opens new tab after the world's second-most valuable company said its board was probing whether CEO Jensen Huang had been the target of a foreign intelligence operation.
A media report alleged he had a close relationship with a Chinese businesswoman who passed information to Beijing. Huang has said he was unfaithful to his wife without disclosing details.
Nvidia's shares gained 2% in premarket trading after dropping 4.3% on Monday. The company is also due to report earnings next week.
All eyes will be on US inflation data later in the day, with prices likely to have increased at a moderate pace in October, economists said, and remaining stubbornly high enough for the Federal Reserve to raise interest rates next month.
"The latest remarks from Fed officials reinforced the case for additional hikes, even as financial-market volatility and uncertainty around AI-related investment supported a deliberate approach towards further tightening," Deutsche Bank analysts said in a note.
Traders are pricing in an 82.2% chance of a rate hike next month versus 74% a week earlier, the CME FedWatch tool showed after a blowout October jobs report on Friday.
The 2-year note yield, which typically moves in step with Fed interest rate expectations, rose 3.3 basis points to 4.58%. The US dollar inched 0.1% lower against the euro and held steady against the Japanese yen .
Reporting by Shashwat Chauhan in Bengaluru and Ankur Banerjee in Singapore; Editing by DJ Yap, Lincoln Feast, Peter Graff