Tech Stocks Extend Surge on Strong AI Demand – Europe Market Wrap
The rally in technology shares showed little sign of slowing as strong results from Cisco and continued momentum in Nvidia reinforced optimism surrounding artificial intelligence.
Nasdaq 100 futures rose 0.2%, putting the index on track for a third record close this week. Nvidia headed toward a sixth straight day of gains, climbing 1.9% in premarket trading. Cisco surged 17% after raising its sales outlook, lifting other network-equipment companies alongside it.
Some major semiconductor firms paused after a powerful run. Intel fell 3.5% and Micron slipped 2.7%, cooling a rally that has driven a basket of US chipmakers nearly 60% higher since early April. Even so, demand for the sector remained strong, highlighted by Cerebras raising $5.55 billion in the largest initial public offering of the year so far.
Bond markets steadied, with yields edging lower after recent increases driven by inflation concerns tied to rising oil prices. The 10-year Treasury yield slipped one basis point to 4.45%. Brent crude edged closer to $106 a barrel, while the dollar traded little changed.
Chipmakers have been at the center of a sharp rebound in equities, helping markets recover from volatility sparked by the Middle East conflict. Major technology firms, including Nvidia, also gained momentum after executives joined President Donald Trump’s delegation during the China summit.
The meeting between Trump and Xi Jinping shifted investor focus away from the Iran conflict, which has left a major route for Middle East oil exports largely shut for more than two months. Xi signaled that China is moving toward greater economic openness as markets watch for trade agreements and business commitments from the world’s second-largest economy.
