Stocks Rebound as Dip Buyers Step In, Dollar Slips: Markets Wrap

(Bloomberg) — Stocks rebounded as dip buyers stepped in after a brief pullback in global equities, sparked by concerns over lofty valuations in technology companies.

Asian equities rose 1.1% after their steepest two-day decline since April, with Hong Kong and Japan among the biggest gainers. Softbank Group Corp. shares rose 2.9% after news that it explored a potential takeover of US chipmaker Marvell Technology Inc. earlier this year.

The advances in Asia followed a Wall Street recovery, where investors returned to some of the biggest beneficiaries of the AI boom after Tuesday’s selloff. The rebound appeared to be losing momentum as US and European equity-index futures weakened. Qualcomm Inc. shares fell 2.6% in late trading, becoming the latest chipmaker to deliver an upbeat forecast and still leave investors underwhelmed.

“The market is recovering today with dip buyers dominating,” said Takehiko Masuzawa, head of equity trading at Phillip Securities Japan Ltd. “Investors are being cautious with AI semiconductor names, but they’re not continuing to sell — because everyone still wants to buy them.”

Elsewhere, gold extended its gains, while oil edged up after three days of losses. The dollar fell slightly against all Group-of-10 peers, with the yen gaining the most. Treasuries rose ahead of speeches from a slew of Fed officials as traders seek clues on the Fed’s rate trajectory.

After a brief pullback that stirred concerns about stretched valuations, buyers returned as strong earnings momentum and upbeat private economic data lifted stocks. The shift in sentiment came after the global equity rally hit a speed bump earlier this week, when Wall Street executives cautioned that lofty valuations could trigger a correction.

Concerns about a narrowing cohort of stocks driving equity gains have become louder, while a pivot in the Federal Reserve’s commentary dented optimism about interest-rate cuts. Later Thursday, the Bank of England is due to announce its policy decision, with markets and economists expecting the BOE to keep the benchmark rate at 4%.

Meanwhile, President Donald Trump’s use of broad powers to impose his signature tariffs faced questions at the Supreme Court, which appeared skeptical of the sweeping global levies. Trump announced the century-high levies in April as part of his economic policy to reshape global trade.

In a nearly three-hour hearing Wednesday, the court hinted it was ready to put significant limits on Trump’s far-reaching agenda for the first time since he took office in January.

“It will certainly have a place in the back of the mind for investors,” said Nick Twidale, chief market analyst at AT Global Markets in Sydney. “Until it transfers to any action, I don’t think we will see much of a reaction from markets.”

Meanwhile, the number of Chinese companies in MSCI Inc.’s global stock gauges climbed for the first time in nearly two years, setting up the market for more inflows from passive investors.

Corporate Highlights:

Arm Holdings Plc, which provides the most widely used technology in computing processors, gave a bullish revenue forecast, helped by increasing interest in designing chips to run AI data centers. A judge denied Pfizer Inc.’s request to temporarily block Novo Nordisk A/S’ $10 billion bid to acquire the obesity startup Metsera Inc. Commerzbank AG raised its outlook for full-year lending income, even after third-quarter results fell short of analysts’ estimates amid a higher tax rate. James Hardie Industries Plc shares tumbled after rivals sounded fresh warnings on the US home-improvement market, worsening what’s been a disastrous year for the company’s management and investors. The US will cut flight capacity by 10% at 40 high-volume markets across the country to alleviate pressure on air traffic controllers and the aviation system during what is now the longest government shutdown in history. International routes will be spared. ArcelorMittal SA said earnings will benefit from stronger European Union protectionist measures, as well as recent acquisitions and investments. Worldline SA said its board has approved a capital increase worth €500 million ($576 million), confirming a Bloomberg News report. Nissan Motor Co. has agreed to sell its global headquarters in Yokohama for ¥97 billion ($630 million) to a group sponsored by Hong Kong-listed autoparts maker Minth Group. Snap Inc. shares surged more than 25% in extended trading after the company announced a $400 million partnership with Perplexity AI Inc. to incorporate its AI-powered search engine into Snapchat. Some of the main moves in markets:

Stocks

S&P 500 futures fell 0.1% as of 6:52 a.m. London time Nasdaq 100 futures fell 0.2% The MSCI Asia Pacific Index rose 1.1% Hong Kong’s Hang Seng rose 1.8% The Shanghai Composite rose 0.9% Euro Stoxx 50 futures were little changed Currencies

The Bloomberg Dollar Spot Index was little changed The euro rose 0.1% to $1.1506 The Japanese yen was little changed at 153.99 per dollar The offshore yuan was little changed at 7.1284 per dollar The British pound was little changed at $1.3056 Cryptocurrencies

Bitcoin fell 0.3% to $103,325.26 Ether fell 1.5% to $3,389.56 Bonds

The yield on 10-year Treasuries declined two basis points to 4.14% Japan’s 10-year yield advanced two basis points to 1.680% Australia’s 10-year yield advanced five basis points to 4.37% Commodities

Spot gold rose 0.2% to $3,988.67 an ounce West Texas Intermediate crude rose 0.4% to $59.84 a barrel This story was produced with the assistance of Bloomberg Automation.

–With assistance from Winnie Hsu and Joanna Ossinger.

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