Tech Stocks Rise as ASML Increases Optimism for Chips – Europe Market Wrap
Technology stocks led equity markets higher after ASML’s earnings offered fresh evidence of relentless demand for chips enabling the global AI buildout. Nasdaq 100 futures rose 0.4%, while S&P 500 futures gained 0.1%. ASML advanced as much as 7.9% in Amsterdam after the chip-making machines manufacturer lifted its sales forecast and laid out plans to increase production. In Seoul, SK Hynix jumped 8.8% as the memory maker played catch-up with its ADRs.
Oil rose for a third straight day after the US military launched a fresh wave of strikes against Iran on Wednesday. Trump said he would intensify bombardments until Tehran stopped attacking ships in the Strait of Hormuz. Brent advanced 1.1% to around $85.60/bbl.
Despite the uncertainty created by the standoff, investors say crude prices remain well off their highs above $100/bbl from earlier in the conflict. Instead, traders are focused on whether earnings can justify elevated valuations, with early results this season looking promising.
Bond yields edged higher in the US and Europe, with the 10Y Treasury yield up 1 bps to 4.60%. The Dollar wavered. While money markets have mostly priced out the possibility of a Fed hike later this month, expectations for a move in September remained high.
Oil’s inflationary threat will remain in focus with the release of June’s producer price print. Tuesday’s CPI data delivered a strong downside surprise, prompting traders to scale back expectations for near-term rate hikes.
