This content was published on
July 31, 2026 - 09:35
4 minutes
(Bloomberg) — A rebound in global chipmakers carried into Friday, buoying stocks to end a month that saw a steep derating in this year’s most popular trade on a positive note.An unprecedented 18% surge in Seoul’s Kospi Index led the gains after memory giant SK Hynix Inc. hit the 30% daily limit. South Korean peer Samsung Electronics Co. climbed as much as 27%. Europe’s Stoxx 600 headed for an all-time high. Nasdaq 100 futures rose 1.1% as Amazon.com Inc. rallied after strong earnings. S&P 500 contracts gained 0.4%.The rebound in chipmakers offered investors a reprieve after a violent selloff, driven by concern that the billions of dollars being poured into AI may not generate commensurate returns. With the policy decision under new chair Kevin Warsh now behind them, investors are turning their attention to whether the recovery can be sustained.“The worst of the positioning washout is probably behind us,” said Florian Ielpo at Lombard Odier Investment Managers. “On valuations, I would say they are more reasonable than a month ago, not cheap. So this is not the end of the AI trade, it is probably the end of its easy phase.”The yen gave back some of Thursday’s gains against the dollar. The Bank of Japan held its policy rate steady after officials took the rare step of wading back into the currency market just hours earlier. Treasuries gained as oil extended declines, while the dollar rose 0.2%.Corporate Highlights:Universal Music Group NV’s shares plummeted the most since July 2024, after the company’s subscription revenue growth fell short of expectations in the second quarter. Apple Inc. tumbled in late trading after component shortages weighed on the company’s sales forecast, signaling that industrywide supply constraints are taking a bigger toll than anticipated. BP Plc said it’s starting a process to market its North Sea business for a potential sale, as part of a wider review of the oil major’s portfolio. NatWest Group Plc raised its guidance for the year and said it will consider buybacks sooner than planned after beating earnings estimates in the second quarter. Credit Agricole SA reported better-than-expected results for the second quarter, as income rose at its French retail business and its asset management arm reported a record profit. Tesla Inc. is weighing a potential separation of its China business to pave the way for a possible merger with SpaceX, the Wall Street Journal reported. Some of the main moves in markets:StocksThe Stoxx Europe 600 rose 1% as of 8:32 a.m. London time S&P 500 futures rose 0.4% Nasdaq 100 futures rose 1.1% Futures on the Dow Jones Industrial Average rose 0.5% The MSCI Asia Pacific Index rose 4.7% The MSCI Emerging Markets Index rose 6.5% CurrenciesThe Bloomberg Dollar Spot Index rose 0.2% The euro fell 0.1% to $1.1513 The Japanese yen fell 0.7% to 160.61 per dollar The offshore yuan was little changed at 6.7448 per dollar The British pound fell 0.1% to $1.3449 CryptocurrenciesBitcoin fell 1.2% to $63,933.89 Ether fell 1.8% to $1,886.31 BondsThe yield on 10-year Treasuries declined three basis points to 4.65% Germany’s 10-year yield was little changed at 3.15% Britain’s 10-year yield declined two basis points to 4.97% CommoditiesBrent crude fell 0.9% to $88.24 a barrel Spot gold fell 0.8% to $4,071.17 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Macarena Muñoz, Neil Campling and Anand Krishnamoorthy.©2026 Bloomberg L.P.
