Tech Optimism and Economic Data Boost Global Equities
Global stock markets posted broad gains on Thursday, driven by upbeat corporate earnings, particularly from the tech sector, and favorable macroeconomic data from the U.S. The tone, however, turned cautious by Friday amid heightened geopolitical tensions in the Middle East and renewed trade concerns.
U.S. Markets Rally on Economic Clarity and Tech Earnings
A breakdown of the key data points and corporate earnings that propelled U.S. equities higher.
Jobless Claims and PPI Signal Stable Economy
The U.S. labour market remains resilient, with jobless claims holding steady. Meanwhile, Producer Price Index (PPI) data came in slightly below expectations, suggesting easing inflation pressures, fueling optimism that the Federal Reserve may pivot towards rate cuts.
Falling Bond Yields Support Utilities and Tech
Bond yields fell sharply, with the 10-year Treasury yield retreating to 4.36%. A strong 30-year bond auction further boosted investor confidence. Utility and technology stocks led gains, buoyed by these lower yields.
Oracle Fuels AI Optimism
Oracle’s latest earnings reignited AI enthusiasm. The firm reported surging demand for its AI-powered cloud infrastructure, sending its stock up over 13% to an all-time high and lifting the broader tech sector.
RH Surges on Strong Earnings
In after-hours trading, shares of luxury furniture retailer RH jumped 20% following a strong earnings report, offering a bright spot amid broader market caution.
Global Sentiment Cautious Amid Geopolitical Strains
Outside the U.S., markets responded cautiously to emerging geopolitical and trade concerns.
Asia and Europe React to Trade and Conflict Concerns
Asian stocks ended lower, digesting news of a tentative U.S.-China agreement on tech and rare-earth exports. In Europe, the Air India crash involving a Boeing Dreamliner dented sentiment, especially in the leisure and aviation sectors. Boeing shares dropped nearly 5%.
European Markets Hit by Tariff News
European equities declined Thursday, with the STOXX 50 falling 1.3% and the STOXX 600 slipping 0.3% after President Trump announced plans for unilateral tariff measures. Major decliners included Deutsche Telekom (–3.5%), ASML (–2%), and Inditex (–1.7%). Blue-chip names like SAP, LVMH, Linde, and L’Oréal also edged lower.
Friday Market Jitters Spark Flight to Safe Havens
Rising tensions in the Middle East spurred risk-off sentiment and a shift to traditional safe-haven assets.
Oil and Gold Surge on Middle East Escalation
Crude oil prices skyrocketed—Brent crude up 8.5% to $75.15 per barrel on fears of broader conflict and supply disruptions. Gold, the yen, and the Swiss franc gained sharply as investors sought shelter.
U.S. Futures Slide on Risk Aversion
Dow, S&P 500, and Nasdaq futures all fell over 1% in premarket trade. Meanwhile, the dollar index rose above 98, reflecting stronger demand for the greenback. The euro slipped in response, with EUR/USD currently trading at 1.1533.
Market Movers and Corporate Updates
Key company-specific developments that influenced stock performance this week.
Nvidia Warns on China Exposure
Nvidia cut China from its financial projections due to U.S. export restrictions-$2.5 billion in Q1 losses and $8 billion more expected in Q2.
Apple Targets 2026 for Siri AI Upgrade
Apple is eyeing a Spring 2026 release for its new AI-enhanced Siri, enabling greater personalization and deeper device integration.
AMD vs Nvidia: The AI Chip War
AMD unveiled its MI350 and MI400 series chips during its “Advancing AI” event, aiming to compete with Nvidia’s Blackwell series.
Adobe Raises Guidance on AI Demand
Adobe upgraded its full-year forecast, powered by strong uptake of Firefly, its generative AI tool suite for creatives.
Boeing and GE Aerospace Drop After Crash
The tragic Air India crash raised concerns about safety and potential delays in aircraft delivery, pushing Boeing and GE Aerospace lower.
Chime’s IPO Impresses
Chime’s IPO saw a strong debut, opening at $43, raising $864 million, and closing at $37.11. The firm has over 8.6 million active users.
Controversy Hits AppLovin
AppLovin shares dropped after a short-seller report alleged hidden Chinese ownership and raised national security concerns.
MP Materials Surges on Rare Earth News
MP Materials surged on speculation that the U.S. may invoke the Defense Production Act to ramp up rare-earth production.
Reddit User Base Declines
Reddit’s users dropped for the third consecutive month, losing 6 million in May, while competitors like Meta and Pinterest gained ad traction.
Insurers Downgraded in Europe
Barclays downgraded Allianz, Swiss Re, and Zurich, citing high valuations and FX risk. AXA and Munich Re remain top picks.
Oracle and Monster Receive Bullish Ratings
Jefferies boosted Oracle’s price target to $220 amid strong cloud demand, while Monster Beverage earned a “Buy” rating from Stifel based on global growth prospects.
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Key Economic Data to Watch
Upcoming economic releases that could influence investor sentiment.
Investors will eye the University of Michigan’s June Consumer Sentiment Index and the Baker Hughes U.S. Rig Count. These figures will provide insights into consumer confidence and the momentum of the energy sector.
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