Chilean Stocks Continue Descent as Global Markets React to AI Investments & Political Shifts
SANTIAGO – Chilean stocks extended their losing streak to nine consecutive days on Monday, with the S&P IPSA closing down 0.65% at 8,832.47 points, remaining below the 9,000-point mark. This downturn occurred as global markets responded to significant developments in artificial intelligence investment and political events.
Globally, technology stocks led gains, fueled by major investments in AI infrastructure.AMD shares surged 30% following an agreement to form a company with OpenAI, valued in the tens of billions of dollars. OpenAI is also reportedly investing $100 billion in Nvidia for chip growth.
The Nasdaq technological index rose 0.71%, while the S&P 500 climbed 0.36%, marking its seventh consecutive day of gains – the longest such streak since May. the Dow Jones Industrial Average experienced a slight decline of 0.14%.
“This morning’s announcement that AMD is forming a company with Openai, valued in tens of billions of dollars, is undoubtedly a key catalyst,” said Matt Maley, from Miller Tabak.”The speculative spirit around the phenomenon of AI receives another impulse to begin the new week.”
Technology companies are investing heavily in advanced chips and data centers to support the growth of AI applications like ChatGPT and Gemini, and to prepare for a potential shift of economic activity from humans to machines.
Despite a US government shutdown, markets remain optimistic. “For now,the stock market is dismissing the closure of the government and It concentrates more on optimism on profits and in the possibility of new feat cuts by the Federal Reserve,” said Robert Edwards,by Edwards Asset Management.
In fixed income markets, long-term Treasury yields rose, mirroring a similar movement in Japanese debt following Sanae Takaichi’s victory in the ruling party, raising concerns about increased fiscal stimulus and debt issuance. French bonds also fell after President Emmanuel Macron appointed a continuity cabinet.
Commodity markets saw gold reach a record high, approaching US $4,000 per ounce, while oil prices rose following an OPEC+ agreement to moderately increase production.
Within the Chilean market, the retail sector weighed heavily on the IPSA, with Falabella (-1.26%) and LATAM Airlines (-2.48%) experiencing significant setbacks. LATAM’s shares have been adjusting to prices following recent secondary sales as former owners divest their holdings. Ceencosud initially traded lower but rebounded to close with minimal change.
Entel (5.26%) was among the best-performing stocks, fueled by speculation regarding a potential acquisition of Telefónica Chile. ”we are looking closely at all options,” regarding the potential purchase, sources indicated last week.
