Stocks Rise to Record as Tech Rebounds, Yuan Gains: Markets Wrap

(Bloomberg) — Equities extended their rally to an all-time high as a rebound in US technology shares gathered pace, easing pressure on markets after worries over outsized spending on artificial intelligence.

The MSCI All Country World Index — one of the broadest measures of the equity market — advanced 0.2% to a record as Asian shares rose 1.1% to an all-time high, led by tech companies such as SoftBank Group Corp. The rally faces a test later Tuesday, with US and European equity-index futures falling 0.1% after the S&P 500 closed near a record on Monday.

Elsewhere, the yuan surged to its strongest level since May 2023 after China was said to have asked banks to limit their holdings of US Treasuries. The dollar was little changed, while gold fell after two days of gains, as investors took profits in a choppy market that’s still trying to find clear direction following a historic rout. Silver also dropped.

The gains in equities signaled easing concerns around the AI trade that had come to a head in the past two weeks, lashing software companies and casting a pall over high-spending tech companies. While that played out, traders are braced for key US economic data that may shape expectations for the Federal Reserve’s interest-rate path.

“Importantly, recent volatility has already removed excess froth, particularly in high-valuation tech and AI names,” said Tareck Horchani, head of prime brokerage dealing at Maybank Securities in Singapore. “Positioning is now cleaner, risk premiums look more reasonable, and markets are entering this phase from a healthier base.”

Stocks showed signs of stabilizing after last week’s sharp selloff, as investors increasingly focus on the scale of corporate spending on AI. Alphabet Inc. is the latest example, planning to raise $20 billion through a US dollar bond offering.

As other companies known as hyperscalers boost spending too, capital expenditures for the four biggest US tech companies are forecast to reach about $650 billion in 2026, driving a financing boom and a potentially disruptive technology that could completely reshape the global economy.

“Whether the market is reassessing its positioning in value areas of the equity market, and now seeing software as more than a short-term trade, and whether investors are pushing back into core AI winners, remains to be seen,” wrote Chris Weston, head of research at Pepperstone Group.

What Bloomberg strategists say…

The negatives keep piling up for the greenback, with China’s warnings that its banks should rein in Treasuries being a fresh reminder for why US assets are much less attractive than they used to be.

— Garfield Reynolds, MLIV Team Leader. For full analysis, click here.

In China, the currency’s strength came as any shift away from US sovereign debt reinforces a broader global trend of diversification away from the dollar. Such a move might accelerate the repatriation of capital into Chinese assets, providing a fundamental tailwind for the yuan.

Elsewhere, the yen gained 0.4%, still trading around 155 per dollar, following Prime Minister Sanae Takaichi’s historic election triumph during the weekend. Bitcoin slid below $70,000, while the pound was steady even as Keir Starmer shored up his position as UK prime minister.

Amid the upbeat mood in stocks, MSCI’s gauge for Asian technology shares was poised for a record close on Tuesday. Adding to the momentum, Japanese shares surged more than 2% to an all-time high, extending their election-fueled rally.

The focus this week, however, is on a packed run of US economic data, including the two most consequential readings: employment and inflation.

The jobs report — due Wednesday — is expected to show payrolls rose 68,000 in January. The unemployment rate is seen steady at 4.4%. The data will also include historical revisions that are anticipated to show a sizable downward adjustment to payrolls in the year through March 2025.

In Friday’s consumer price index, economists will look for more evidence that inflation is on a downward trend. Before that, figures on Tuesday are projected to show solid retail sales.

Those releases could shape expectations for the Fed’s next move on interest rates. Traders are broadly expecting policymakers to leave rates on hold when they meet next month as they did in January when they voted to keep them at 3.5% to 3.75%.

Treasury yields fell on Monday after National Economic Council Director Kevin Hassett said lower US jobs numbers can be expected in the months ahead as population growth slows.

“The stabilizing labor market — marked by modest hiring and limited layoffs — should help keep the Fed on track to cut rates once or twice this year, assuming price pressures continue to ease,” said Angelo Kourkafas at Edward Jones.

Corporate Highlights:

Royal Philips NV is targeting an operating margin around the mid-teens by 2028 as the medical technology firm seeks to draw a line under a costly recall of its sleep apnea devices. Gucci sales fell in the final months of last year as Kering SA struggles to revive its biggest brand. Standard Chartered Plc said that its Chief Financial Officer Diego De Giorgi will step down from his role with immediate effect, in a surprise departure from the lender after about two years in the role. Taiwan Semiconductor Manufacturing Co.’s January sales grew at their fastest clip in months, a sign of sustained global AI spending even as concerns persist about an industry bubble. Honda Motor Co. maintained its annual profit guidance after weak sales and US tariffs weighed on quarterly earnings. US tech giants such as Amazon, Google and Microsoft are set to get a reprieve from forthcoming US tariffs on imported semiconductors under a new Commerce Department plan, the Financial Times reports. Some of the main moves in markets:

Stocks

S&P 500 futures fell 0.1% as of 6:53 a.m. London time Nasdaq 100 futures fell 0.2% The MSCI Asia Pacific Index rose 1.1% Hong Kong’s Hang Seng rose 0.5% The Shanghai Composite rose 0.2% Euro Stoxx 50 futures fell 0.2% Currencies

The Bloomberg Dollar Spot Index was little changed The euro fell 0.1% to $1.1902 The Japanese yen rose 0.3% to 155.40 per dollar The offshore yuan was little changed at 6.9097 per dollar The British pound fell 0.2% to $1.3669 Cryptocurrencies

Bitcoin fell 2.3% to $68,764.98 Ether fell 5.8% to $1,999.26 Bonds

The yield on 10-year Treasuries declined one basis point to 4.19% Japan’s 10-year yield declined four basis points to 2.235% Australia’s 10-year yield declined four basis points to 4.83% Commodities

Spot gold fell 0.7% to $5,023.26 an ounce West Texas Intermediate crude was little changed This story was produced with the assistance of Bloomberg Automation.

–With assistance from Gabrielle Ng.

©2026 Bloomberg L.P.