Stocks Climb as AI-Led Rebound Enters Day Two: Markets Wrap
(Bloomberg) — A recovery in the artificial-intelligence trade carried into a second day, with oil prices falling as hostilities in the Middle East eased.
Nasdaq 100 futures advanced 0.8% as chipmakers including Marvell Technology Inc. and Micron Technology Inc. posted strong premarket gains. S&P 500 contracts rose 0.5%, while Europe’s Stoxx 600 climbed 0.6%.
Sentiment received support from lower energy costs, with Brent sliding 2% toward $92 a barrel. Israel and Iran agreed to end their tit-for-tat attacks, while President Donald Trump renewed his claims that a US peace deal with Tehran was nearly done.
After a brief pause in the rally that propelled equities to record highs, traders are returning on expectations that corporate profits will give stocks further room to run. OpenAI’s confidential filing for an initial public offering and the oversubscription of SpaceX’s share sale also served as reminders of AI’s vast growth potential and thirst for investment.
While AI “has driven a strong rally so far, it also carries a high risk of pullbacks, which are bound to occur given the dynamic nature of the sector’s development,” said Guillermo Hernandez Sampere, head of trading at MPPM.
In currency markets, the dollar headed for a back-to-back loss. Indonesia’s central bank raised its benchmark rate ahead of its next scheduled meeting to reverse a market selloff and support the rupiah. Treasuries rose modestly as traders dialed back bets on US interest-rate hikes.
Warnings that a push higher in stocks could prove choppy still abound. Citigroup Inc. strategists said traders are aggressively building short-selling positions in US equities, while bullish wagers on the tech sector remained stretched.
Friday’s near 5% selloff in the Nasdaq 100 has only partially reset exposure among investors, the Citi team led by David Chew noted.
The next few weeks hold major risk events, with inflation data due Wednesday and the first Federal Reserve interest-rate decision under Chairman Kevin Warsh on June 17.
“If inflationary risks continue to rise, a more aggressive repricing of the Fed could easily challenge current valuations and derail equity markets,” said Wolf von Rotberg, equity strategist at Bank J Safra Sarasin.
Gold held steady near $4,330 an ounce. The appeal of the precious metal has steadily faded from a peak above $5,400 in January after the war in the Middle East upended expectations for US monetary policy, shifting bets from rate cuts to possible hikes.
Citing the likelihood of a rate hike by the Fed this year, Citigroup Inc. lowered its three-month target for gold to $4,000 an ounce from $4,300.
“Longer term, we maintain a bullish gold view, but we believe it is extremely high-risk in the near term for anyone without very wide stops and longer-term investment horizons,” analysts including Kenny Hu said in a note. Citi maintained its six- to 12-month price target at $5,000 an ounce.
What Bloomberg Strategists Say:
“With limited event risk today, the positive mood could last through the session. However, markets are not in the clear. A busy calendar over the next couple of weeks, kicking off with inflation data tomorrow, is likely to revive volatility.”
— Skylar Montgomery Koning, macro strategist. For the full analysis, click here.
Corporate News:
Taiwan authorities are considering much stricter export controls on AI chip sales to China to further align with US measures, according to people familiar with the matter. GSK Plc agreed to buy clinical-stage biopharmaceutical company Nuvalent Inc. in a deal valued at $10.6 billion to expand in oncology treatments. Saudi Arabia’s Mutlaq Al-Ghowairi Contracting Co. has postponed plans for an initial public offering that was set to raise as much as $799 million and rank as the region’s first major listing of the year. OpenAI, the maker of ChatGPT, filed confidentially for an IPO, joining artificial intelligence rivals in tapping public markets to fund ambitious growth plans. Elon Musk’s xAI has brought over an executive from SpaceX’s Starlink satellite-internet service to run the team that trains its Grok chatbot, replacing college-aged engineer Diego Pasini, according to an internal note seen by Bloomberg News. Some of the main moves in markets:
Stocks
S&P 500 futures rose 0.4% as of 6:54 a.m. New York time Nasdaq 100 futures rose 0.7% Futures on the Dow Jones Industrial Average rose 0.2% The Stoxx Europe 600 rose 0.6% The MSCI World Index rose 0.2% Currencies
The Bloomberg Dollar Spot Index fell 0.2% The euro rose 0.3% to $1.1567 The British pound rose 0.4% to $1.3394 The Japanese yen was little changed at 160.17 per dollar Cryptocurrencies
Bitcoin fell 1.3% to $62,662.3 Ether fell 1.1% to $1,671.46 Bonds
The yield on 10-year Treasuries declined one basis point to 4.55% Germany’s 10-year yield was little changed at 3.06% Britain’s 10-year yield declined one basis point to 4.93% Commodities
West Texas Intermediate crude fell 2.4% to $89.12 a barrel Spot gold was little changed This story was produced with the assistance of Bloomberg Automation.
–With assistance from Neil Campling and Michael Msika.
©2026 Bloomberg L.P.
