Stocks Find Buyers After Slide as Gold Hits $4,000: Markets Wrap
(Bloomberg) — A brief respite in the stock rally from the edge of a bear market just six months ago was quickly followed by the resurgence of dip buyers on speculation equities have more room to run despite elevated valuations.
The insatiable appetite for stocks has propelled a 35% in the S&P 500 from this year’s tariff-fueled meltdown, with occasional calls for consolidation only seeing the index bounce back after a breather on bets the bull market is nowhere near its end.
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Momentum-chasing traders keep piling into stocks, which remain close to their all-time highs after a series of records fueled by factors such as corporate resilience and the restart of Federal Reserve rate cuts. Renewed enthusiasm around artificial intelligence has trumped recent calls around a bubble forming in the high-profile tech names that have led the rally.
“With price-to-earnings ratios for today’s tech giants still well below those of the tech firms at the peak of the dotcom bubble, we think the bull market remains intact,” said Mark Haefele at UBS Global Wealth Management.
The S&P 500 rose 0.2%. The yield on 10-year Treasuries declined two basis points to 4.10%. The dollar was little changed. Gold hit the historic $4,000 mark.
Corporate Highlights:
Elon Musk’s artificial intelligence startup xAI is raising more financing than initially planned, tapping backers including Nvidia Corp. to lift its ongoing funding round to $20 billion, according to people with knowledge of the matter. Cisco Systems Inc. is releasing a new chip and networking system meant to connect AI data centers across hundreds of miles, a move that escalates competition with Broadcom Inc. Jefferies Financial Group Inc. said it has $161 million of exposure to funds that held trade receivables and loans of bankrupt auto-parts supplier First Brands Group. Canada’s Cenovus Energy Inc. increased its takeover bid for rival MEG Energy Corp. one day before MEG investors were due to vote, signaling that the companies’ original deal didn’t have enough shareholder support. ASML Holding NV shares fell after US lawmakers accused the Dutch chip equipment maker of boosting China’s semiconductor industry, raising the specter of further export controls on the company’s lithography machines. BMW AG lowered its financial guidance on weak sales in China and tariff costs, underscoring the difficulties Germany’s export-reliant auto industry is facing. Security services group Verisure Plc’s shares rallied in its first day of trading, after the initial public offering raised about €3.2 billion ($3.72 billion) in the largest European debut in three years. Teck Resources Ltd. once again cut output guidance for its flagship copper mine in Chile, little more than a month after agreeing one of the biggest ever mining deals with Anglo American Plc. SoftBank Group Corp. agreed to acquire ABB Ltd.’s industrial robots unit at an enterprise value of almost $5.4 billion, reflecting billionaire Masayoshi Son’s growing bets on emerging technology in artificial intelligence and robotics. Some of the main moves in markets:
Stocks
The S&P 500 rose 0.2% as of 9:30 a.m. New York time The Nasdaq 100 rose 0.2% The Dow Jones Industrial Average rose 0.2% The Stoxx Europe 600 rose 0.7% The MSCI World Index rose 0.2% Currencies
The Bloomberg Dollar Spot Index was little changed The euro fell 0.2% to $1.1632 The British pound was little changed at $1.3422 The Japanese yen fell 0.4% to 152.52 per dollar Cryptocurrencies
Bitcoin rose 0.4% to $122,475.67 Ether fell 0.8% to $4,474.95 Bonds
The yield on 10-year Treasuries declined two basis points to 4.10% Germany’s 10-year yield declined three basis points to 2.68% Britain’s 10-year yield declined two basis points to 4.70% The yield on 2-year Treasuries was little changed at 3.56% The yield on 30-year Treasuries declined three basis points to 4.70% Commodities
West Texas Intermediate crude rose 1% to $62.32 a barrel Spot gold rose 1.3% to $4,035.98 an ounce ©2025 Bloomberg L.P.
