Semiconductors lift markets as risk appetite returns

Market Commentary

US equities picked up on Thursday as semiconductor stocks rallied and signs of easing credit conditions lifted sentiment. The S&P 500 climbed 0.80%, the Nasdaq 100 advanced close to 1.30% and the Dow added just over 139 points. Memory‑chip makers drove the gains after investors reassessed the speculative rush into artificial intelligence (AI)‑infrastructure suppliers, bolstered by reports of strong demand for SK Hynix’s American depositary receipts (ADR). Micron and Western Digital’s SanDisk surged by 5.20% and 7.60%, respectively.

Reduced fears of a wider Middle East disruption also supported risk appetite, helping financials lead the rally: Morgan Stanley, Goldman Sachs and American Express were up 1.90%, 2.60% and 3.10%, respectively. Meta recovered from early losses to finish 4% higher after signalling plans to begin producing its own AI chip by September.

European equities closed higher as concerns about the outlook for interest rates eased. The Euro STOXX 50 rose 1.20% to 6 282, while the STOXX Europe 600 gained 0.80% to finish at 640. Technology names were among the best performers. Semiconductor‑related stocks drew renewed buying ahead of SK Hynix’s anticipated US market debut, with reports of very strong ADR demand restoring confidence in the AI investment theme. ASML and Infineon both rose more than 4%, while Siemens Energy and Siemens each added over 3%.

Asian markets were mixed. A rebound in semiconductors and broader tech helped offset lingering inflation worries from higher oil and renewed US–Iran tensions. Japan’s Nikkei rose 1.38%, the Shanghai Composite gained 1.57%, while Hong Kong’s Hang Seng fell 0.79%.

South African equities ended higher, aided by mining gains and a firmer rand. The FTSE/JSE All Share Index (ALSI) advanced 1.05% to close at 109 489 points, while the Top 40 Index rose 1.13% to finish at 101 317 points. Resources and Metals and Mining led the gains, rising 3.39% and 3.62%, respectively.

Brent crude eased to $76.39 per barrel on Thursday, giving back some of the prior session’s gains as markets reassessed the risk to supplies from renewed US–Iran hostilities. Despite recent strikes and retaliatory incidents, there is little evidence of a major disruption to exports through the Strait of Hormuz. Precious metals gained, with gold up 1.38% per ounce and silver rising 3.53%.