Tech Stocks Advance as ASML Adds to Chips Optimism: Markets Wrap

(Bloomberg) — Technology stocks are leading equity markets higher after ASML Holding NV’s earnings offered fresh evidence of the relentless demand for chips enabling the global artificial-intelligence buildout.

Nasdaq 100 futures climbed 0.4%. ASML advanced as much as 7.9% in Amsterdam, with the chip-making machines manufacturer lifting its sales forecast and laying out plans to raise production. S&P 500 futures gained 0.1%. In Seoul, SK Hynix Inc. jumped 8.8% as the memory maker played catch-up with its American depositary receipts.

“What we’re seeing in these numbers is confirmation that this cycle is very much alive,” said Guy Miller, chief markets strategists at Zurich Insurance. “We are going to see a continuation, I believe, of super-normal profits for certain sectors within the semiconductor space.”

Oil prices rose for a third straight day, with Brent trading near $85.25 a barrel, after the US military launched more airstrikes against Iran on Wednesday. President Donald Trump said he would intensify bombardments until Tehran stopped attacking ships in the Strait of Hormuz.

Despite the uncertainty created by the standoff, investors say crude prices remain well off their highs above $100 a barrel from earlier in the conflict. Instead, traders are looking at whether earnings can justify high valuations, with early results this season looking promising.

“Investors are aware that the road toward peace could never have been expected to be a straight line,” said Stephan Kemper, chief investment strategist at BNP Paribas Wealth Management. “As such, company fundamentals matter more than ever.”

The threat posed by oil prices will remain in focus with the release of June’s producer price print. Inflation data on Tuesday delivered a strong downside surprise, prompting traders to dial down their expectations for near-term interest-rate hikes.

Bond yields rose in the US and Europe, with the yield on 10-year Treasuries up two basis points to 4.61%. The dollar wavered. While money markets have mostly priced out the possibility of a Federal Reserve hike later this month, expectations for a move in September remained high.

Among single stocks, Paypal Holdings Inc. surged 20% as Reuters reported that Stripe Inc. and Advent International are pursuing a buyout. Morgan Stanley fluctuated despite posting record quarterly earnings from its equities unit.

Fed Chair Kevin Warsh will testify in the Senate on Wednesday, with New York Fed President John Williams and Governor Lisa Cook scheduled to speak at separate engagements.

“Any hint toward the CPI print being an outlier could revive rate hike concerns,” Kempner said. “This would be even more true if other Fed officials start to echo yesterday’s comments from the Fed Chair about the mission being ‘not yet’ accomplished.”

What Bloomberg Strategists Say:

“The rolling negative five-day correlation between the Stoxx Europe 600 and Brent suggests renewed tensions in the Middle East are once again weighing on European equities. That relationship has not re-emerged for the S&P 500, suggesting it would take a much larger rise in oil prices to derail the outlook for US stocks.”

— Skylar Montgomery Koning, macro strategist. Click here for the analysis.

Corporate Highlights:

Johnson & Johnson reported second-quarter sales above expectations on strong growth of drugs for cancer, inflammatory diseases and treatment-resistant depression. BlackRock Inc. pulled in $192 billion of net client cash in the second quarter, with investors pouring money into exchange-traded funds and pushing total assets above $15 trillion for the first time. Payment processing firm Stripe Inc. and private equity firm Advent International offered to buy fintech pioneer PayPal Holdings Inc. at a valuation topping $53 billion, Reuters reported. Nvidia Corp. founder Jensen Huang stressed that the US company’s next-generation AI accelerator systems were in production and on track for delivery to customers. ASML Holding NV lifted its annual sales forecast for the second time this year as a surge in artificial intelligence spending drives demand for the Dutch company’s chip-making machines. Richemont sales expanded nearly twice as strongly as expected in the quarter through the end of June, supported by robust demand among wealthy Americans for its Cartier rings and bracelets. BASF SE expects to see higher earnings than previously expected this year, after the company increased prices for its chemical products that include base materials for plastics and cleaning agents. Some of the main moves in markets:

Stocks

S&P 500 futures rose 0.1% as of 7:47 a.m. New York time Nasdaq 100 futures rose 0.4% Futures on the Dow Jones Industrial Average were little changed The Stoxx Europe 600 was little changed The MSCI World Index was little changed Currencies

The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1414 The British pound rose 0.1% to $1.3405 The Japanese yen was little changed at 162.37 per dollar Cryptocurrencies

Bitcoin rose 0.2% to $64,654.62 Ether rose 0.3% to $1,880.02 Bonds

The yield on 10-year Treasuries advanced two basis points to 4.61% Germany’s 10-year yield advanced two basis points to 3.14% Britain’s 10-year yield advanced two basis points to 4.99% Commodities

West Texas Intermediate crude rose 0.5% to $79.73 a barrel Spot gold fell 0.4% to $4,036.56 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Sujata Rao.

©2026 Bloomberg L.P.