Stocks Get Tech Lift Despite Renewed Bond Losses: Markets Wrap
(Bloomberg) — A rally in giant technology companies drove stocks higher, overshadowing concerns about still-elevated oil prices and bond yields.
The S&P 500 approached a record as a gauge of megacaps climbed 1.3%. Political upheaval in Europe and fiscal worries sent the euro to its weakest since May 2025, boosting the dollar’s haven appeal. Treasury 10-year yields hit the highest since 2002. Brazilian assets soared as market-friendly Flávio Bolsonaro became the front-runner to win the presidential election runoff.
Markets have absorbed rising rates, higher energy costs and renewed inflation concerns, with stocks continuing to advance. Strong earnings, consumer spending and sustained artificial intelligence-related investment have all kept growth intact, according to Principal Asset Management.
“There’s plenty for investors to worry about, but earnings continue to be the counterweight,” said Mark Hackett at Nationwide. “What’s encouraging is that the strength isn’t a fluke. We’re seeing a healthy combination of growth and margin expansion.”
Rates are becoming “more punitive” and expectations are high, but companies have outgrown those pressures, he said.
Investors have gotten too bearish on stocks, with earnings expected to remain robust and the surge in bond yields looking increasingly stretched, according to JPMorgan Chase & Co.’s strategists led by Mislav Matejka.
“Relative equity-market calm amid the bond market’s ‘perfect storm’ is understandable, given accelerating economic growth and the AI boom’s rate insensitivity,” said Lisa Shalett at Morgan Stanley Wealth Management.
A drop in US stock valuations has left some areas looking attractive as earnings growth shows few signs of waning, according to Morgan Stanley’s Michael Wilson. The extent of the pullback has created a “better setup” for sectors linked to the economic cycle, he said.
“Equities have room to move higher over the next six to 12 months amid resilient economic growth and robust earnings,” said Ulrike Hoffmann-Burchardi at UBS Chief Investment Office. “But the path is unlikely to be smooth.”
Elsewhere, US oil dropped to around $90. President Donald Trump is preparing to ease limits restricting the use of a tax-exempt variety of diesel, his latest bid to pare costs for the essential fuel.
Corporate Highlights:
Intel Corp. fell after a report on discussions of a potential collaboration between Taiwan Semiconductor Manufacturing Co. and Elon Musk’s Terafab initiative, which the US chipmaker joined in April. Cerebras Systems Inc. rallied after OpenAI Chief Executive Officer Sam Altman said the company is a “close partner,” and the two firms have a deep engagement pushing on the frontiers of speed. CH Robinson Worldwide Inc. agreed to buy trucking brokerage firm RXO Inc. in a deal centered around a bet that artificial intelligence can help the companies improve efficiency in a challenging freight market. Cenovus Energy Inc. agreed to buy Athabasca Oil Corp. for about C$5.8 billion ($4.1 billion), expanding its footprint in the Canadian oil sands. Nvidia Corp. partner Hon Hai Precision Industry Co. reported better-than-expected quarterly revenue, signaling sustained and elevated spending on global AI infrastructure. What Bloomberg Strategists say…
“The upcoming earnings season is set to show a continued improvement in breadth, with the S&P 493 on pace to outgrow the Magnificent Seven on earnings for the first time in years.”
—Tatiana Darie, Macro Strategist, Markets Live. For the full analysis, click here.
Some of the main moves in markets:
Stocks
The S&P 500 rose 0.7% as of 2 p.m. New York time The Nasdaq 100 rose 0.8% The Dow Jones Industrial Average rose 0.3% The MSCI World Index rose 0.5% Currencies
The Bloomberg Dollar Spot Index rose 0.1% The euro fell 0.4% to $1.1210 The British pound fell 0.2% to $1.3215 The Japanese yen fell 0.1% to 158.07 per dollar Cryptocurrencies
Bitcoin fell 0.5% to $85,399.48 Ether was little changed at $2,704.92 Bonds
The yield on 10-year Treasuries advanced seven basis points to 5.34% Germany’s 10-year yield advanced three basis points to 3.49% Britain’s 10-year yield advanced five basis points to 5.42% Commodities
West Texas Intermediate crude fell 1.2% to $90.02 a barrel Spot gold fell 0.1% to $4,135.88 an ounce ©2026 Bloomberg L.P.
