Chipmakers Fuel Rise in Stocks as Oil Fluctuates – Europe Market Wrap
Stocks advanced as investors grew more confident that tensions between the US and Iran would remain contained, supporting risk appetite despite continued geopolitical uncertainty. Oil prices fluctuated, while semiconductor stocks rallied across Asia, Europe and US premarket trading.
S&P 500 futures rose 0.1% and Nasdaq 100 futures gained 0.6%, with chipmakers leading gains after SK Hynix attracted strong demand for its American depositary receipt offering. In Europe, AstraZeneca fell 9.3% after disappointing results from a heart disease drug trial.
The improvement in market sentiment came despite continued escalation in the Middle East, where the US struck around 90 Iranian targets in an effort to weaken Tehran’s ability to target commercial shipping in the Strait of Hormuz, keeping uncertainty around a permanent US-Iran peace agreement elevated.
Brent crude traded near $78/bbl after swinging between gains and losses, while global government bonds recovered modestly following two sessions of oil-driven selling. The 2Y Treasury yield fell 2 bps to 4.20%, and the Dollar was little changed.
The US earnings season began with mixed results. Pepsi narrowly missed estimates for Q2 organic sales growth, while Levi Strauss fell 6% in premarket trading after raising its full-year guidance by less than investors had expected.
