Stocks Rise as Robust Tech Earnings Lift Sentiment: Markets Wrap
(Bloomberg) — Global stocks advanced on Thursday as strong technology earnings shifted focus away from the lingering threat of a US-China trade war.
Nasdaq 100 futures rose 0.4% as Taiwan Semiconductor Manufacturing Co. hiked its revenue-growth target and raised its forecast for capital spending. Artificial intelligence-linked US heavyweights led premarket gains, including Nvidia Corp., Micron Technology Inc. and Broadcom Inc. Contracts for the S&P 500 added 0.2%.
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Europe’s Stoxx 600 advanced ahead of a confidence vote in French premier Sebastien Lecornu. Nestlé SA jumped more than 8% after reporting a rebound in sales and unveiling plans to cut 16,000 jobs. An MSCI gauge for Asian shares rose 0.9%.
Meanwhile, gold soared to as high as $4,242 an ounce, taking gains this year to more than 60% as trade frictions and expectations for further Federal Reserve interest-rate cuts lured buyers. The dollar slipped for a third day, while Treasuries were little changed after two-year yields fell toward their lowest level for 2025. Oil rose from a five-month low.
TSMC’s results underscored how leading chipmakers stand to be among the biggest winners from an AI investment boom that’s expected to top $1 trillion in the coming years. The market’s response showed investors remain optimistic about the corporate outlook, even as renewed trade tensions cast a shadow.
“We’re seeing that companies continue to spend, AI technology has been adopted and keeps being adopted,” said Anthi Tsouvali, a multi-asset strategist at UBS Global Wealth Management. “Equities should continue to move upwards. But having said that, I don’t think that it’s going to be a straight line.”
After several months of relative calm, friction between Washington and Beijing has flared up again, with stocks seeing sharp swings as dip buyers step in following selloffs. The latest development saw Treasury Secretary Scott Bessent float the possibility of extending a pause on import duties if China halts its planned controls on rare earths.
Beating Estimates
Despite the tensions, corporate earnings have reminded investors that the fundamentals for stocks remain strong at a time when the Federal Reserve is cutting rates. Among S&P 500 companies that have reported earnings through Wednesday, 78% have beaten estimates, according to data compiled by Bloomberg Intelligence.
Investors are getting so used to “political ups and downs, that they are now realizing that unless they hurt the earnings of companies, which are the real drivers of risk markets, then they really cannot affect equity markets,” Fabiana Fedeli, chief investment officer for equities, multi-asset and sustainability at M&G Investments, told Bloomberg TV.
Some of the main moves in markets:
Stocks
The Stoxx Europe 600 rose 0.3% as of 10:12 a.m. London time S&P 500 futures rose 0.2% Nasdaq 100 futures rose 0.4% Futures on the Dow Jones Industrial Average rose 0.2% The MSCI Asia Pacific Index rose 0.9% The MSCI Emerging Markets Index rose 0.9% Currencies
The Bloomberg Dollar Spot Index fell 0.1% The euro was little changed at $1.1657 The Japanese yen fell 0.2% to 151.32 per dollar The offshore yuan was little changed at 7.1274 per dollar The British pound rose 0.3% to $1.3438 Cryptocurrencies
Bitcoin fell 0.2% to $110,904.11 Ether rose 1% to $4,003.56 Bonds
The yield on 10-year Treasuries was little changed at 4.02% Germany’s 10-year yield was little changed at 2.57% Britain’s 10-year yield was little changed at 4.54% Commodities
Brent crude rose 0.6% to $62.28 a barrel Spot gold rose 0.5% to $4,230.50 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Anand Krishnamoorthy and Sagarika Jaisinghani.
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