The equity rally gathered further momentum after strong results from TSMC helped ease concerns around overheating in technology. Asian equities rose 0.3%, led by tech-heavy markets, pushing the MSCI All Country World Index to a fresh all-time high. Nasdaq 100 futures gained 0.5% as confidence in the AI-driven earnings outlook improved, although European equity futures pointed lower. The move suggests recent rotation away from megacap tech is stabilising rather than reversing.
Markets continue to take comfort from the durability of the broader rally, which has rebounded sharply from April lows on the back of Fed rate cuts and optimism around AI-supported growth. TSMC’s update helped reinforce the view that heavy investment is translating into earnings rather than excess, easing valuation concerns that had weighed on sentiment in recent weeks. At the same time, bond markets remain calm, with Treasuries little changed and yields stuck in a tight range as expectations for U.S. monetary policy remain broadly stable.
In currencies, USD/JPY edged lower toward 158 after Japan’s finance minister again flagged concern about yen weakness, keeping intervention risk in focus as the pair trades near recent highs. Oil remained under pressure after its sharp recent decline, while gold and silver continued to ease from record levels. Attention also remains on geopolitics, with rising Middle East tensions adding an additional layer of risk into otherwise constructive markets.
- S&P 500 futures +0.3%
- Nasdaq 100 futures +0.5%
- Bitcoin +0.1% to ~95,700
- Gold -0.4% to ~4,597/oz
- WTI crude -0.1% to ~59.11/bbl
