Global equities experienced a broad-based rally, driven by lower oil prices, easing inflation expectations, and resilient US economic data, according to Deutsche Bank strategists [1]. The S&P 500 rose by 1.79%, closing at an all-time high for the first time in two months, while the Nasdaq outperformed with a 2.59% gain. The Philadelphia Semiconductor Index surged 6.55%, marking its strongest daily gain since March and extending its four-day advance to 16.58%, the largest since 2020 [1]. However, the Mag-7 stocks underperformed, rising only 0.73% [1].
European markets also saw significant gains, with the Stoxx 600 (+0.73%), DAX (+0.77%), CAC (+0.61%), and FTSE MIB (+1.26%) all reaching new all-time highs. The FTSE 100 was just 0.3% below its historic peak, reflecting widespread investor optimism beyond the US, fueled by the combination of lower oil prices and easing inflation concerns [1].
Asian markets mirrored the positive sentiment, with the KOSPI leading gains at 4.32% and the Nikkei up 3.32%. Mainland Chinese stocks advanced as well, with the Shanghai Composite up 1.34% and the CSI 300 up 0.99%. The Hang Seng was little changed at +0.11%. In Australia, the S&P/ASX 200 rose 0.71%, approaching its record high from March 2, supported by a strong June household spending print (+0.8% MoM vs +0.2% expected) [1].
Despite the overall positive equity mood, AMD shares declined in extended trading after the chipmaker's Q3 revenue guidance of $13 billion came in slightly ahead of consensus ($12.5 billion) but below more optimistic estimates. This led to NASDAQ futures (+0.11%) underperforming S&P 500 futures (+0.32%) overnight, though the general sentiment in equities remained upbeat [1].
CONCLUSION
Global equities rallied to record highs, buoyed by softer inflation, lower oil prices, and optimism around AI and resilient economic data. While most sectors and regions participated in the rally, some tech stocks like AMD faced headwinds due to earnings guidance. Overall, market sentiment remains strongly positive, with risk appetite supported across major global indices.