Chip Rebound Drives Stocks Higher as Oil Eases: Markets Wrap
(Bloomberg) — A strong rebound in chipmakers drove stock markets higher in a broadly supportive session that also saw lower oil prices, a rise in gold and steady Treasury yields.
Nasdaq 100 futures rallied 1.3%, while those for the S&P 500 climbed 0.5%. An exchange-traded fund tracking major sector names advanced 4.1% in premarket trading. Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co. led Asia’s regional benchmark to its first gain in four days. Technology stocks also outperformed in Europe.
Dip buyers are picking up chip stocks at cheaper valuations after the sector suffered its worst week in more than a year. Chipmakers have been the biggest beneficiaries of the global buildout of artificial intelligence, but have been plagued by volatility in recent times because of concerns over lofty multiples and questions about whether hyperscalers will sustain their spending.
UBS Group AG’s trading desk said the selloff in momentum stocks may be nearing its end, creating an opportunity for investors to start rebuilding positions in AI and chips.
“While volatility is likely to remain high given the elevated concentration still present in parts of the market, the correction has been both deep and lengthy enough to alleviate some valuation concerns,” said Santiago Mateo Yanguas, head of equity at CaixaBank AM.
A dip in oil prices added to the positive sentiment, with Brent crude down 0.5% to below $89 a barrel after surging almost 6% over the previous two days. The relative calm could be short-lived, though, as the US and Iran kept up their exchange of strikes for a 10th straight day.
Goldman Sachs Group Inc. analysts warned Brent could rally to more than $120 a barrel by the fourth quarter if disruptions in the Strait of Hormuz persist, although that’s not the bank’s base case. At present, Goldman sees Brent at $80 a barrel in the fourth quarter, with risks to the forecasts “tilted to the upside.”
In the UK, government bonds posted ticked higher as investors awaited fresh policy details from new Prime Minister Andy Burnham. Weak economic data dimmed bets on higher interest rates.
All eyes will soon focus on the start of the reporting season for Big Tech firms, where AI hyperscalers will also update investors on their capital spending plans. Alphabet Inc. reports on Wednesday, while Microsoft Corp., Meta Platforms Inc. and Amazon.com Inc. are due next week.
“The next test is no longer whether AI demand exists, but whether pricing, margins and cash flow can justify the capex bill,” said Florian Ielpo, head of macro at Lombard Odier Investment Managers. “If they can, the rebound should broaden. Otherwise, volatility remains the regime.”
What Bloomberg Strategists Say:
“Markets are more concentrated than ever meaning earnings matter more, but reporting risk is spread across the summer. Alphabet and Tesla kick off Big Tech earnings this week, followed by Microsoft, Meta, Apple and Amazon next week. Semiconductor companies then report throughout the rest of the season, keeping the market’s most important industry firmly in focus well into August.”
— Skylar Montgomery Koning, macro strategist. Click here for the analysis.
Corporate News:
TSMC has held discussions with clients about price increases of as much as 10% in 2027 to cover the rising cost of manufacturing materials, the Nikkei reported, citing people with knowledge of the matter. Paramount Skydance Corp. is facing a legal hurdle that risks putting its $110 billion takeover of Warner Bros. Discovery Inc. on hold for months. Novartis AG reported higher-than-expected profit last quarter as newer cancer medicines offset the aging blockbuster Entresto’s generic hit, signaling a return to growth. Julius Baer Group Ltd. profit more than doubled to a record in the first half of the year as the Swiss wealth manager emerges from a long reorganization. Swatch Group AG gave upbeat guidance for sales growth for the rest of this year after posting lower-than-expected profit in the first half. Some of the main moves in markets:
Stocks
The Stoxx Europe 600 rose 0.1% as of 9 a.m. London time S&P 500 futures rose 0.4% Nasdaq 100 futures rose 1.2% Futures on the Dow Jones Industrial Average rose 0.3% The MSCI Asia Pacific Index rose 2.4% The MSCI Emerging Markets Index rose 2.2% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1423 The Japanese yen was little changed at 162.60 per dollar The offshore yuan was little changed at 6.7670 per dollar The British pound was little changed at $1.3441 Cryptocurrencies
Bitcoin rose 1.3% to $66,160.29 Ether rose 1.5% to $1,933.43 Bonds
The yield on 10-year Treasuries was little changed at 4.59% Germany’s 10-year yield was little changed at 3.15% Britain’s 10-year yield declined two basis points to 5.01% Commodities
Brent crude fell 1% to $88.35 a barrel Spot gold rose 1.6% to $4,072.25 an ounce This story was produced with the assistance of Bloomberg Automation.
This story was produced with the assistance of Bloomberg Automation.
©2026 Bloomberg L.P.
