Global stocks experienced a slight uptick in trading on Thursday, as European markets saw gains followed by a mixed session on Wall Street. The day’s trading was marked by a slowdown in AI momentum and a dip in oil prices due to a ceasefire between Israel and Lebanon.
In the U.S., the S&P 500 rebounded from early losses to finish higher, with the Dow Jones Industrial Average reaching a record closing high. However, the Nasdaq saw a slight decline, driven by losses in technology shares while healthcare and financial stocks saw gains. The Dow rose by 1.73%, the S&P 500 by 0.41%, and the Nasdaq Composite fell by 0.09%.
One notable event was the sharp decline in shares of Broadcom by over 12%, dragging down semiconductor stocks as the chipmaker’s results failed to meet investor expectations. This led to a 2.2% loss in the Philadelphia semiconductor index.
In Europe, stock markets rose by 0.52%, while MSCI’s global stock gauge increased by 0.09%. James St. Aubin, chief investment officer at Ocean Park Asset Management, noted the weakness in chip stocks following Broadcom’s disappointing news, highlighting the fragility of sentiment in the tech sector.
On the geopolitical front, U.S. President Donald Trump’s efforts to broker a ceasefire in Lebanon were undermined by Hezbollah’s rejection and Israel’s refusal to withdraw troops. The U.S. House of Representatives also passed a war powers resolution to limit Trump’s conflict with Iran, although it faces hurdles in the Senate.
Despite these challenges, markets embraced the ceasefire agreement, leading to a nearly 3% drop in Brent crude prices to $95.03 a barrel. In currency markets, the Japanese yen hovered around the key level of 160 against the dollar, prompting speculation of official intervention.
Amidst these developments, the Japanese yen strengthened slightly against the dollar, while the euro and Swiss franc saw modest fluctuations. U.S. Treasury yields decreased, with the yield on 10-year notes falling to 4.477%. Gold prices rose by 1.03% to $4,477.51 an ounce, while Bitcoin experienced a 2.53% decline to $63,265.22.
As the day concluded, the market landscape reflected a delicate balance between geopolitical tensions, tech sector performance, and currency fluctuations. These factors will continue to shape investor sentiment and market dynamics in the days ahead.
(Reporting by Chibuike Oguh in New York; Editing by Nia Williams, Chris Reese and David Gregorio)
