Global equities climbed to fresh highs as demand for AI-linked stocks continued to dominate market sentiment. The MSCI All Country World Index rose to a record, while Asian equities gained 0.7% and chipmakers reached new peaks after the Philadelphia Semiconductor Index hit an all-time high. US futures were little changed, and European markets pointed slightly lower.
The rally remains heavily supported by enthusiasm for semiconductors and AI infrastructure, with investors looking past valuation concerns and continuing to back companies tied to the build-out. Marvell surged after Nvidia’s Jensen Huang highlighted its potential, while Kioxia briefly overtook Toyota to become Japan’s second-most valuable company. Strong US labour data also reinforced the view that the economy remains resilient, though it added to expectations that the Fed’s next move could be a rate hike.
The main macro headwind remains oil, with Brent rising above $97 as prospects for a US–Iran peace deal weakened and fighting continued in the Middle East. Higher crude prices, a firmer dollar, and USD/JPY hovering near 160 kept pressure on bonds, with the US 10-year yield rising to 4.47%. Gold and Bitcoin both slipped as elevated yields and inflation concerns weighed on non-yielding and risk assets.
On the data front, we have PMI releases across the UK and Europe, followed by US mortgage applications at noon and ADP employment data early in the afternoon.
• S&P 500 futures unchanged
• Nasdaq 100 futures unchanged
• US 10-year yield +2 bps to 4.47%
• Bitcoin −0.6% to $67,073
• Gold −0.5% to $4,466
• WTI +1.7% to $95.36
