Tech Dip Buyers Lift Stocks as Oil Rally Cools: Markets Wrap
(Bloomberg) — Dip buyers drove technology stocks higher, with traders betting that a record-breaking rally in chipmakers has further room to run. Oil wavered after a streak of three daily gains as the Strait of Hormuz remained shut.
Nasdaq 100 contracts advanced 0.6% alongside a rebound in South Korea’s Kospi index and an all-time high for a key tech-heavy gauge in China. S&P 500 futures gained 0.2%, while mining stocks led a 0.3% advance in Europe.
Nvidia Corp. climbed 2.1% in US premarket trading after co-founder Jensen Huang joined President Donald Trump on his visit to China. Processor and memory chipmakers, the key drivers of the past month’s narrow rally in the artificial-intelligence trade, posted broad gains. The dollar climbed 0.1%.
Treasuries and European government bonds were little changed. Gilts pared early gains as the UK’s political drama carried on. In the latest twist, a potential contender for the premiership, Wes Streeting, was preparing to resign from Prime Minister Keir Starmer’s cabinet.
Tech stocks are rallying again as investors count on the vast earnings potential of AI to withstand worries over elevated oil prices, with flows from the Middle East showing no sign of normalizing. Traders are also banking that this week’s summit between Trump and China’s Xi Jinping could unlock a series of trade deals, especially around semiconductors.
“The most difficult question for investors right now is to find hedge trades in case the war in Iran drags on and oil prices stay high,” said Marija Veitmane, head of equity research at State Street Global Markets. “The best place to hide would be companies with stronger earnings and margins, as well as highly visible and predictable earnings. All roads lead to tech.”
On a busy earnings day in Asia, SoftBank Group Corp. reported a surprise increase in profit, helped by valuation gains on its OpenAI investment. Tencent Holdings Ltd.’s revenue missed estimates, while Alibaba Group Holding Ltd. reported weaker-than-expected sales.
Brent, meanwhile, fluctuated around $108 a barrel after rising more than 8% over the past three sessions. Oil inventories are falling around the world at a record pace and will continue to drop for months, the International Energy Agency said.
Higher oil costs have started to seep into consumer prices, pushing bond yields up as investors fear central bankers will have little choice but to tighten policy. Markets will get another US inflation reading on Wednesday, with producer prices expected to show the war pushing costs up throughout the supply chain.
“The PPI data today will likely confirm the spike in inflation,” said Joachim Klement, head of strategy at Panmure Liberum. “Inflation in the US is rising so quickly that even if Kevin Warsh wants to cut interest rates, he may not have any arguments to do so by the time he shows up at the Fed.”
Corporate News:
SoftBank Group Corp. reported a surge in quarterly profit due to valuation gains on its OpenAI investment. Tencent Holdings Ltd. reported its slowest revenue growth in six quarters, underscoring the urgency around its costly AI pivot while core businesses like games and advertising show signs of age. Alibaba Group Holding Ltd. reported weaker-than-expected sales, stoking concerns about its ability to convert substantial AI investments into a major growth driver. Blackstone Inc. has walked away from a proposed $4 billion tie-up with New World Development Co. after the embattled property developer refused to hand over the reins, people familiar with the matter said. Anthropic PBC is in early talks with investors to raise at least $30 billion in fresh financing, according to people familiar with the matter. Samsung Electronics Co. failed to reach a last-minute wage agreement with its largest labor union, heightening the risk of a strike. Saudi Aramco is considering plans to raise billions of dollars from its real estate assets, including a sprawling campus that houses its headquarters in the kingdom’s Eastern Province. Some of the main moves in markets:
Stocks
S&P 500 futures rose 0.2% as of 6:37 a.m. New York time Nasdaq 100 futures rose 0.7% Futures on the Dow Jones Industrial Average fell 0.3% The Stoxx Europe 600 rose 0.3% The MSCI World Index was little changed Currencies
The Bloomberg Dollar Spot Index rose 0.2% The euro fell 0.3% to $1.1705 The British pound fell 0.3% to $1.3505 The Japanese yen fell 0.1% to 157.85 per dollar Cryptocurrencies
Bitcoin rose 0.3% to $80,900.38 Ether rose 1% to $2,307.54 Bonds
The yield on 10-year Treasuries was little changed at 4.46% Germany’s 10-year yield was little changed at 3.10% Britain’s 10-year yield was little changed at 5.10% Commodities
West Texas Intermediate crude was little changed Spot gold fell 0.4% to $4,696.29 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Neil Campling and Subrat Patnaik.
©2026 Bloomberg L.P.
