Stocks Rise While Oil Steady and the Chip Rout Stops – Europe Market Wrap
A rout in chip stocks paused at the start of a week dominated by Big Tech earnings, with investors watching to see whether the recent bout of volatility gives way to renewed momentum. Nasdaq 100 futures rose 0.7%, snapping a three-day losing streak, while S&P 500 futures gained 0.3%. A semiconductor ETF rebounded 1.6% in premarket trading.
In Hong Kong, Alibaba rallied after unveiling a preview of its latest flagship AI model. Meanwhile, markets continued to assess the implications of Chinese startup Moonshot AI’s latest breakthrough, with traders weighing potential winners and losers across the AI sector. While the model is said to rival leading US offerings at a fraction of the cost, it still requires significant memory capacity to operate.
Oil gave back early gains as signs of ongoing US-Iran diplomacy helped ease immediate supply concerns despite continued tit-for-tat attacks between the two countries. WTI crude traded around $82.40 a barrel after erasing an earlier advance. However, the inflationary impact of the conflict remained evident as US gasoline prices climbed back above $4 per gallon.
Treasury and European bond yields edged higher, while the Dollar was little changed. European stocks fluctuated between modest gains and losses, Asian equities slipped 0.2%, and subdued trading extended across gold and Bitcoin.
