Stock Rally Wavers as Oil Rises on Shipping Threat: Markets Wrap
(Bloomberg) — US stocks paused after a four-day rally as investors assessed the latest earnings from technology megacaps, while oil edged higher as a fresh threat against Middle East shipping tempered optimism over US-Iran talks.
S&P 500 futures rose 0.2%, while contracts on the Nasdaq 100 fell 0.1%. Nvidia Corp. gained in premarket trading after key partner Hon Hai Precision Industry Co. reported a 54.2% increase in monthly sales, signaling sustained demand in global AI infrastructure buildout.
However, a cautious tone lingered as SpaceX shares fell 8% in premarket trading after the company projected higher-than-expected spending on its AI business. Advanced Micro Devices Inc. dropped about 7% after an underwhelming sales outlook.
Brent crude reversed some of Tuesday’s 5.3% plunge after Yemen’s Houthi militant goup theatened to escalate attacks on Saudi vessels in the northern Red Sea. Still, the commodity held around $80 a barrel after Axios reported that Washington, Tehran and Oman were nearing an agreement to resume oil flows through the Strait of Hormuz. That’s easing inflation fears and upward pressure on Treasury yields.
“As oil prices come back to the $75-$80 dollar range, markets can focus on fundamentals, which remain robust,” said Mohit Kumar, a strategist at Jefferies International. “Earnings have been solid and there is still a lot of liquidity out there. Positioning is very clean, which sets a nice backdrop for a further rally in risky assets.”
Strong results from technology megacaps plus the recent correction have brought valuations to more reasonable levels, helping to restore investor confidence after a bout of volatility in AI stocks triggered losses at several hedge funds last month.
“Albeit there was some disappointment on the micro level, the numbers are still confirming that the overarching macro trend is intact as they confirm the durability of the compute build-out,” said Stephan Kemper, chief investment officer at BNP Paribas Wealth Management Germany. “Thus, tech as a whole can benefit even if single players suffer.”
The MSCI World Semiconductor Index had tumbled more than 20% from its peak in June, driven by worries around the sustainability of AI spending boom and progress in China’s advanced chipmaking. The gauge has rebounded 15% since then, taking its gains this year to 42%.
Earlier, a US chips gauge posted its strongest four-day gain since 2020.
What Bloomberg Strategists Say…
“The broader shift away from pure hardware exposure has already reshaped equity performance globally. If the first phase of the AI rally was defined by chips and optical equipment, the next phase may increasingly belong to the platforms putting the technology to work.”
— Andre de Silva, Strategist, Markets Live. For full analysis, click here.
The three pressures behind the recent selloff — AI spending concerns, higher bond yields and the increase in oil prices — are all easing at the same time, said Charu Chanana, chief investment strategist at Saxo Markets in Singapore. Strong earnings are reassuring investors that AI demand remains intact, while lower oil and bond yields are taking pressure off valuations, she said.
Europe’s Stoxx 600 benchmark erased an early gain, with Novo Nordisk A/S falling 4% after sales of its popular Wegovy weight-loss pill disappointed investors. HSBC Holdings Plc declined after a series of analyst downgrades.
Among other individual European stocks, Siemens Energy AG climbed after demand for gas turbines and grid equipment boosted profit margins. Glencore Plc gained 4% after reporting a jump in profit. Sandoz Group AG surged 7% after meeting sales estimates for the second quarter.
German chipmaker Infineon Technologies AG, however, fell more than 5% after reporting margin pressures despite meeting analysts’ expectations for revenue in the fourth quarter.
“What’s new in the AI trade is that there’s a lot of dispersion within semiconductors or hyperscalers,” said Roland Kaloyan, head of European equity strategy at Societe Generale. “That means clients such as equity portfolio managers who can’t invest in indexes have challenging stock picking choices to make.”
The dollar, the haven of choice during the Middle East conflict, weakened against most of its Group-of-10 peers. A Bloomberg gauge of the currency’s strength fell 0.1%, a third day of losses. Treasuries were steady.
Gold, silver and platinum all rose as the non interest-bearing precious metals benefit when interest rates are not increased. Bullion climbed 2.1% to about $4,164 an ounce.
Corporate Highlights:
SpaceX fleshed out its plans to compete directly with the largest mobile phone carriers in the US by complementing its satellite-based internet service with land-based infrastructure. Heineken NV’s volumes grew more than expected in the second quarter as strong demand in Asia and Africa offset persistent weakness in Europe and the Americas. Siemens Energy AG said strong demand for gas turbines and grid equipment should push the profit margin in the current fiscal year to the upper end of its guidance corridor. Chanel’s sales rose by double digits in the first half, beating luxury rivals including LVMH, as wealthy shoppers splurged on the new fashion creations of designer Matthieu Blazy. Some of the main moves in markets:
Stocks
The Stoxx Europe 600 was little changed as of 9:58 a.m. London time S&P 500 futures rose 0.2% Nasdaq 100 futures fell 0.1% Futures on the Dow Jones Industrial Average rose 0.2% The MSCI Asia Pacific Index rose 2.1% The MSCI Emerging Markets Index rose 2% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1536 The Japanese yen was little changed at 157.82 per dollar The offshore yuan was little changed at 6.7491 per dollar The British pound was little changed at $1.3459 Cryptocurrencies
Bitcoin fell 0.4% to $64,071.07 Ether fell 0.4% to $1,868.47 Bonds
The yield on 10-year Treasuries was little changed at 4.61% Germany’s 10-year yield declined one basis point to 3.09% Britain’s 10-year yield was little changed at 4.89% Commodities
Brent crude rose 1.2% to $80.35 a barrel Spot gold rose 2% to $4,160.19 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Michael Msika, Julien Ponthus, Levin Stamm and Anand Krishnamoorthy.
©2026 Bloomberg L.P.
