Global Stocks Hold Near Record High, Yen Weakens: Markets Wrap

(Bloomberg) — Global stocks held near record highs and futures pointed to further gains after a tech-led Wall Street rally followed a month of high volatility. The yen gave back some of its recent advance that was triggered by US and Japanese intervention.

The MSCI All Country World Index held around 1,130, just below its all-time high of 1,136.59. A tech-led rally on Wall Street on Monday lifted the S&P 500 Index to within striking distance of a record, while futures for the gauge climbed to an all-time high. Palantir Technologies Inc. surged 14% in extended trading after raising its forecasts. European stock futures also pointed to gains, while Asia lagged.

The yen slipped 0.3% to 157.70 per dollar during the Asian session. The currency had surged more than 4% over the previous four days on coordinated action by the US and Japan.

Treasuries pared some of Monday’s gains as oil rebounded from the previous session, when optimism that geopolitical tensions in the Middle East was easing sent the commodity lower. Treasury 10-year yield rose two basis points to 4.69% as West Texas Intermediate climbed 0.8% to $81 a barrel, after sliding 5% on Monday.

Monday’s rebound in US technology shares followed a volatile month as investors questioned whether billions of dollars of spending on artificial intelligence will translate into stronger growth and profits. Geopolitical developments and US jobs data later this week also remain in focus as traders assess whether lower oil prices will ease inflation pressures and influence interest-rate expectations.

“Investors are essentially waiting for data to force a clearer read on rate direction rather than trading on rhetoric,” said Billy Leung, an investment strategist at Global X Management. “Friday’s US payrolls print — that’s the next real test.”

Another potential challenge for markets comes Tuesday, when SpaceX reports its first earnings as a public company.

It also sets the stage for one of the largest share unlocks in capital markets history, with as much as $116 billion of stock becoming eligible for sale for the first time next month.

“Investors are cautious ahead of SpaceX earnings and job reports while they digest a mixed picture on the Middle East,” said Fabien Yip, a market analyst at IG International in Sydney.

On Monday, a Wall Street rally saw a gauge of megacaps post its best day since March and a gauge of semiconductor stocks rose about 1%. But the volatility in the sector is rippling across the industry, with Coatue Management’s hedge fund plunging 8.3% last month as the selloff in AI stocks whipsawed another tech-focused money manager.

Sentiment on Wall Street assets remained more positive with Nasdaq 100 futures rising 0.6%. While Palantir gained, Amazon.com Inc. dropped 1.6% post-market after Chair Jeff Bezos disclosed plans to sell shares. A three-day rally helped the company reach a $3 trillion market value on Monday.

“Until now, investors had largely focused on the ‘picks-and-shovels’ plays of the AI boom, buying into companies supplying the infrastructure behind AI, which helped lift Asian technology stocks,” said Hiroki Takei, a strategist at Resona Holdings. “But now that there are growing signs that those investments are beginning to generate returns, attention is shifting back toward companies that actually use AI to drive earnings growth.”

In Japan, bond futures sank and government bond yields rose after a 10-year bond sale had its weakest demand since May 2025.

The on-again, off-again nature of US-Iran diplomacy may mean earnings and jobs data will have to do the heavy lifting for the bulls this week, according to Chris Larkin at E*Trade from Morgan Stanley.

In the countdown to a slew of jobs figures, data on Monday showed US manufacturing activity expanded in July at the fastest pace in more than four years, production surged and firms added workers.

Forces that propelled US stocks to record highs this year remain “firmly intact” after a reset in retail investors’ speculative trading, according to Citadel Securities’s Scott Rubner.

“Markets are transitioning from a flow-driven environment back to one increasingly dictated by earnings, corporate demand, and the macroeconomic backdrop,” he wrote.

Corporate News:

HSBC Holdings Plc announced a fresh stock buyback and raised its cost-cutting target as it reported second-quarter earnings that beat estimates despite China’s crackdown on cross-border wealth flows. Toyota Motor Corp. unveiled a ¥1 trillion ($6.3 billion) buyback and lifted its profit outlook as resilient hybrid demand and a weak yen helped make up for rising costs, tariffs and supply disruptions. Saudi Aramco reported a 33% increase in second-quarter profit as it benefited from a war-driven surge in oil prices, while keeping exports flowing through a pipeline that bypasses the Strait of Hormuz. Continental AG’s operating profitability improved in the second quarter after the German parts maker sold more of its premium tires. Deutsche Lufthansa AG warned of heightened uncertainty for its full-year outlook as volatility in jet fuel prices and shortened booking cycles complicate efforts to boost profit. Bayer AG posted better-than-expected profit in the second quarter, helped by a strong performance in its crop science business. India is aiming to raise as much as $3.3 billion by selling a small stake in Life Insurance Corp. Some of the main moves in markets:

Stocks

S&P 500 futures rose 0.3% as of 7:02 a.m. London time Nasdaq 100 futures rose 0.6% The MSCI Asia Pacific Index fell 0.2% The MSCI Emerging Markets Index fell 0.3% Japan’s Topix rose 0.1% Australia’s S&P/ASX 200 rose 1.3% Hong Kong’s Hang Seng fell 0.8% The Shanghai Composite rose 0.6% Euro Stoxx 50 futures rose 0.4% Currencies

The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1506 The Japanese yen fell 0.3% to 157.69 per dollar The offshore yuan was little changed at 6.7543 per dollar The British pound was little changed at $1.3424 Cryptocurrencies

Bitcoin was little changed at $63,740.03 Ether fell 0.3% to $1,861.77 Bonds

The yield on 10-year Treasuries advanced two basis points to 4.69% Japan’s 10-year yield advanced three basis points to 2.850% Australia’s 10-year yield advanced four basis points to 4.97% Commodities

Spot gold rose 0.2% to $4,063.71 an ounce West Texas Intermediate crude rose 0.8% to $80.96 a barrel This story was produced with the assistance of Bloomberg Automation.

–With assistance from Elaine Lai and Abhishek Vishnoi.

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