Stocks Increase as the Chipmakers Rebound Accelerates – Europe Market Wrap
Stocks rose on Tuesday as a rebound in chipmakers gathered pace, lifting global equity markets after last week’s sharp selloff in the sector. Nasdaq 100 futures climbed 1.3%, while S&P 500 futures gained 0.5%. A widely followed semiconductor ETF jumped 4%, with technology stocks also leading gains across Asia and Europe.
In Asia, stronger-than-expected export data from South Korea and Taiwan boosted sentiment, sending shares of Samsung Electronics and TSMC higher. Investors have returned to semiconductor stocks after valuations became more attractive following the sector’s worst weekly decline in over a year.
The recovery comes as traders remain optimistic about the long-term AI investment cycle despite recent concerns over high valuations and whether major technology companies will maintain elevated spending on AI infrastructure. Those worries had driven heavy volatility in chip stocks over recent sessions.
Elsewhere, Brent crude rose 1.2% to trade above $90 a barrel as conflict between the US and Iran entered a tenth consecutive day, with both sides continuing to exchange strikes despite diplomatic efforts to restore a ceasefire.
In the UK, government bond yields edged lower after weaker economic data reduced expectations for further interest rate hikes. Investors also awaited new policy announcements from Prime Minister Andy Burnham, while the London Stock Exchange unveiled plans to launch a new trading venue offering near-continuous trading beyond regular market hours.
