ACFMarketWrap: Markets shake off rate fears, but geopolitics keeps traders on edge - US equities bounced from one-month lows, with the S&P 500, Dow and Nasdaq ~( 0.45%) as strength in tech offset concerns over higher rates.
Fresh PPI data signalled accelerating price pressures in May, reinforcing expectations that the Fed could still hike this year, while President Trump said the US will resume strikes on Iran tonight and target Kharg Island, raising the stakes in the Middle East.
AI-linked infrastructure names remained resilient as anticipation builds ahead of the SpaceX IPO, highlighting continued hyperscalers’ spending on compute capacity.
$INTC surged 9% after a BofA upgrade tied to strong CPU demand, while
$ORCL tumbled 12% as investors reacted to plans for increased borrowing to fund data centre expansion despite flat sales. The Mag 7 were mixed:
$TSLA ( 1.17%),
$NVDA ( 0.15%),
$AMZN (-0.34%),
$GOOG (-2.38%),
$META (-1.78%),
$AAPL ( 0.01%) and
$MSFT (-2.39%).
In Europe, investors digested escalating US-Iran tensions and an ECB rate hike @ 2.4% (vs 2.15% prev.) alongside higher inflation forecasts and weaker growth projections.
$SAP (-4.5%) remained under pressure,
$DTE.DE (-3.0%) on a potential combination with
$TMUS ( 0.8%).
Energy and utilities outperformed, led by
$ENR.DE ( 6.0%) and
$BAYN.DE ( 1.19%).
$SAP (-4.5%) remained under pressure, while chipmakers outperformed with
$ASML ( 5%),
$IFX.DE ( 2.6%) and
$STM ( 5.9%) advancing on continued AI optimism. Luxury names also found buyers, with
$MC ( 1.5%) higher and
$BOSS.DE ( 9%) surging after major shareholder
$FRAS.L launched a $2bn takeover bid. FTSE 100 0.7%
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