This content was published on
August 5, 2026 - 09:37
6 minutes
(Bloomberg) — Global stocks climbed to a record as hopes rose for a US-Iran deal to open the Strait of Hormuz, while investors renewed bets on the artificial intelligence trade, driving gains in chipmakers.S&P 500 futures rose 0.3% after the index hit another all-time high, buoyed by a rally in technology stocks. Europe’s Stoxx 600 hit a new record, as did MSCI’s All Country World Index.Brent crude held around $80 a barrel after Tuesday’s 5.3% plunge, as Axios reported that Washington, Tehran and Oman were nearing an agreement to resume oil flows through the Strait. Treasuries were steady and gold advanced as traders curbed expectations for interest-rate hikes.“As with most episodes of geopolitics, markets tend to get desensitized. All that matters is oil prices and as long as oil prices come back to the $75-$80 dollar range, markets can focus on fundamentals, which remain robust,” said Mohit Kumar, a strategist at Jefferies International. “Earnings have been solid and there is still a lot of liquidity out there. Positioning is very clean, which sets a nice backdrop for a further rally in risky assets.”Strong results from technology megacaps plus the recent correction have brought valuations to more reasonable levels, helping to restore investor confidence after a bout of volatility in AI stocks triggered losses at several hedge funds last month. However, a cautious tone lingered as SpaceX shares fell 7.5% in extended trading after the company projected higher-than-expected spending on its AI business. Advanced Micro Devices Inc. dropped about 9% after giving an underwhelming sales outlook.SpaceX had “a good quarter at the core, but we prefer to stay on the sidelines given complex lockup expiry structures leaving the stock vulnerable to technical movements, as well as positioning which appears to be heavily short at present,” said Andrea Gabellone, head of global equities at KBC Securities.The MSCI World Semiconductor Index had tumbled more than 20% from its peak in June, driven by worries around the sustainability of AI spending boom and progress in China’s advanced chipmaking. The gauge has rebounded 15% since then, taking its gains this year to 42%.Earlier, a US chips gauge posted its strongest four-day gain since 2020.“What’s new in the AI trade is that there’s a lot of dispersion within semiconductors or hyperscalers,” said Roland Kaloyan, head of European equity strategy at Societe Generale. “That means clients such as equity portfolio managers who can’t invest in indexes have challenging stock picking choices to make.”What Bloomberg Strategists Say…“The broader shift away from pure hardware exposure has already reshaped equity performance globally. If the first phase of the AI rally was defined by chips and optical equipment, the next phase may increasingly belong to the platforms putting the technology to work.”— Andre de Silva, Strategist, Markets Live. For full analysis, click here.The three pressures behind the recent selloff — AI spending concerns, higher bond yields and the increase in oil prices — are all easing at the same time, said Charu Chanana, chief investment strategist at Saxo Markets in Singapore. Strong earnings are reassuring investors that AI demand remains intact, while lower oil and bond yields are taking pressure off valuations, she said.Among individual European stocks, Siemens Energy AG climbed more than 3% after demand for gas turbines and grid equipment boosted profit margins. Glencore Plc gained 4% after reporting a jump in profit. Sandoz Group AG surged 7% after meeting sales estimates for the second quarter.The dollar, the haven of choice during the Middle East conflict, weakened against most of its Group-of-10 peers. A Bloomberg gauge of the currency’s strength fell 0.1%, a third day of losses.Gold, silver and platinum all rose as the non interest-bearing precious metals benefit when interest rates are not increased. Bullion climbed 2.2% to about $4,165 an ounce.Corporate Highlights:SpaceX fleshed out its plans to compete directly with the largest mobile phone carriers in the US by complementing its satellite-based internet service with land-based infrastructure. Heineken NV’s volumes grew more than expected in the second quarter as strong demand in Asia and Africa offset persistent weakness in Europe and the Americas. Siemens Energy AG said strong demand for gas turbines and grid equipment should push the profit margin in the current fiscal year to the upper end of its guidance corridor. Some of the main moves in markets:StocksThe Stoxx Europe 600 rose 0.3% as of 8:35 a.m. London time S&P 500 futures rose 0.3% Nasdaq 100 futures were little changed Futures on the Dow Jones Industrial Average rose 0.2% The MSCI Asia Pacific Index rose 2.1% The MSCI Emerging Markets Index rose 2.1% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1536 The Japanese yen was little changed at 157.71 per dollar The offshore yuan was little changed at 6.7472 per dollar The British pound was little changed at $1.3459 CryptocurrenciesBitcoin fell 0.4% to $64,019.98 Ether fell 0.7% to $1,862.77 BondsThe yield on 10-year Treasuries was little changed at 4.61% Germany’s 10-year yield declined one basis point to 3.10% Britain’s 10-year yield declined one basis point to 4.89% CommoditiesBrent crude rose 0.9% to $80.11 a barrel Spot gold rose 2.1% to $4,162.99 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Michael Msika, Julien Ponthus and Levin Stamm.©2026 Bloomberg L.P.
