JPMorgan: Tech Rally Broadened as Geopolitical Optimism Supports Sentiment - FJElite

Technology led the global equity rally, helped by lower oil and energy prices as markets priced in some geopolitical optimism ahead of the UN General Assembly and Trump-Xi summit. Meta’s Muse drove much of the strength after topping app-store download charts, with growing adoption of agentic AI supporting CPU-linked stocks because of the heavier compute requirements. The tech rebound has faded somewhat in Asia this morning, while US and European futures point to a quieter open.

AI leadership is expected to become broader than in the first half of the year, with opportunities extending beyond memory into CPUs, optics, substrates, packaging and other infrastructure tied to inference. Security software is also expected to benefit as agentic AI expands the potential attack surface. In China, the domestic AI ecosystem continues to strengthen, with DeepSeek seeking more local chips for model training and Alibaba planning a more powerful domestic AI chip alongside a major expansion in global data-centre capacity.