U.S. stock market rally is more influenced by AI than oil prices.
As the earnings season begins, investor interest has shifted from oil prices to AI investments and companies' AI-related performance and spending. There is a high likelihood that this quarter's results and executives' comments on AI will have a greater impact on market indices.
![U.S. stock market rally is more influenced by AI than oil prices](/blog-images/gen-be22f874-bd94-48c1-9426-6138dfbe2ab3.avif],
The recent rise in the U.S. stock market has become more sensitive to expectations of AI investments than to oil prices. This is because investors are closely monitoring the AI-related performance and spending plans of companies coinciding with the start of the earnings season.
Market participants are trying to gauge companies' demand for AI through early earnings reports and executives' comments during the earnings season. In particular, the results from semiconductor, server, and enterprise software firms are drawing attention.
Traditionally, movements in the energy market and fluctuations in oil prices played a significant role in stock market volatility. Recently, the earnings announcements of large tech companies seem to have a greater influence on market indices.
In corporate earnings disclosures, investors check not only revenue and profit but also the share of AI-related sales and capital expenditure plans. There are numerous cases where changes in management guidance are linked to short-term stock price volatility.
The energy sector and oil prices remain important variables in terms of costs and prices. However, during this earnings season, the pace of AI adoption, server and chip demand, and software sales forecasts are being reflected in the market more immediately.
This earnings season is a quarter that shows whether companies can translate AI spending into actual results. Investors are monitoring the earnings announcement schedules and management's comments regarding AI for individual companies.
Sources: MarketWatch Top Stories
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