Indian Shares Seen Higher As AI Selloff Deepens, Oil Prices Ease

(RTTNews) - Indian shares look set to open higher on Monday, with information technology stocks in the spotlight after the tech-heavy Nasdaq plunged to its lowest closing level in three months on Friday amid renewed concerns about the artificial intelligence trade. Additionally, ongoing discussions involving Iranian officials and Qatari mediators have raised hopes of possible breakthrough that could ease supply concerns and improve the outlook for global energy markets.

Key benchmark indexes Sensex and Nifty ended higher last week even as broader markets witnessed a sharp sell-off on concerns over elevated crude oil prices.

Asian markets were broadly lower this morning, pressured by declined in U.S. technology shares on Friday amid growing concerns about massive AI spending.

Following Intel's nearly 29 percent plunge on Friday, its worst one-day drop in decades, investors looked ahead to upcoming earnings from Apple, AMD and Palantir for further direction.

In a research report, Goldman Sachs analysts said that major hyperscale technology companies are likely to spend around US$800 billion on capital expenditures in 2026, nearly double the previous year's total, before reaching US$1.2 trillion in 2027.

The investment bank expects earnings growth for the S&P 500 to slow from nearly 30 percent in 2026 to 18 percent in 2027.

The U.S. dollar was rangebound in early Asian trade ahead of this week's U.S. midterm elections that will determine control of Congress. In economic releases, readings on U.S. manufacturing and employment may offer more insights into the outlook for interest rates.

Gold rose nearly 1 percent toward $4,000 an ounce after falling 6.8 percent last month.

Brent crude futures fell almost 2 percent toward $111 a barrel after climbing 13.6 percent in October.

Investors weighed reports of continued talks between Iranian and Qatari officials aimed at ending the U.S.-Israeli war on Iran against fears of renewed U.S. military action against Iran.

U.S. stocks slumped on Friday as a sell-off in tech and artificial intelligence stocks worsened amid concerns that massive AI spending may not deliver the returns that investors expect.

The tech-heavy Nasdaq Composite plummeted 2.9 percent and the S&P 500 fell 1.8 percent, each suffering their worst day since June, following disappointing quarterly results from Intel and Amazon and reports suggesting that hackers stole $6.3 billion from Binance. The narrower Dow lost 1.1 percent.

European stocks closed mostly lower on Friday as higher oil prices and renewed concerns over AI investment returns overshadowed strong corporate earnings.

The pan-European STOXX 600 dropped 0.4 percent. While the U.K.'s FTSE 100 index edged up 0.1 percent, France's CAC 40 finished marginally lower and the German DAX fell 0.9 percent.