Tech Stocks Rebound as AI Rally Regains Momentum – Europe Market Wrap
Dip buyers pushed technology stocks higher as traders wagered that the record-setting rally in chipmakers still has further room to run. Oil traded unevenly after three straight daily gains, with the Strait of Hormuz remaining closed.
Nasdaq 100 futures climbed 0.7%, while South Korea’s Kospi rebounded and a major tech-focused index in China reached a fresh all-time high. S&P 500 futures gained 0.2%, and mining shares helped lift European markets by 0.3%.
Nvidia rose 2.5% in US premarket trading after co-founder Jensen Huang joined President Donald Trump during his visit to China. Semiconductor and memory-chip companies — key drivers behind the recent AI-led rally — posted widespread gains. The dollar strengthened 0.2%.
Treasuries and European government bonds edged higher. UK gilts trimmed earlier gains as political uncertainty in Britain continued. In the latest development, reports said Wes Streeting, viewed as a possible future prime minister, was preparing to step down from Keir Starmer’s cabinet.
Technology shares are rallying once again as investors continue to bet that the long-term earnings potential from artificial intelligence can outweigh concerns over elevated oil prices and ongoing disruptions in Middle East energy flows. Traders are also hopeful that this week’s meeting between Trump and China’s Xi Jinping could pave the way for additional trade agreements, particularly involving semiconductors.
Brent crude fluctuated near $108 a barrel after climbing more than 8% across the previous three sessions. The International Energy Agency said global oil inventories are shrinking at a record pace and are expected to keep falling for months.
