AI investment optimism and stronger consumer sentiment set a bullish tone for Monday’s markets

Global markets on Monday are likely to be driven by the strong risk-on momentum that emerged Friday, centered on renewed optimism about artificial intelligence (AI) investment and signs of resilient consumer sentiment. The sharp rebound in major U.S. indices—where the S&P 500 logged its best day since May and the Nasdaq jumped more than 2%—signals that investors are again willing to take on risk after earlier worries that AI-related spending might slow. A key catalyst was Amazon’s indication that it plans roughly $200 billion in investment this year focused on AI, chips, robotics, and satellite infrastructure. This helped restore confidence that the broader AI and semiconductor spending cycle may be more durable than feared, a theme that influences global equity markets given how central U.S. tech and chip names are to worldwide growth expectations. At the same time, a stronger-than-expected University of Michigan consumer sentiment reading suggested that households—especially those with stock holdings—remain relatively confident. This supports the view that consumer spending, a major driver of global economic activity, could stay resilient. The rally in economically sensitive sectors such as airlines underscores that investors are reassessing recession risks lower, which can lift global equities and related risk assets as trading resumes Monday. Together, these factors set up markets to trade on whether Friday’s optimism can carry into the new week. Investors will focus on any fresh corporate commentary about AI and capital spending, as well as upcoming economic data that could confirm or contradict the improving sentiment narrative. If confidence in ongoing AI investment and consumer strength holds, it could support a bullish tone across global stock markets at the start of the week.