After Friday’s sell-off, US equities recovered some losses as Wall Street ticked up on AI optimism. Europe was mixed, Asia fell, and Australia was closed for the King’s Birthday weekend holiday.
US stocks rebound on tech recovery
US equities rebounded on Monday as semiconductor stocks recovered from Friday’s sell-off, with investors weighing Middle East tensions, shifting rate expectations, and the durability of the AI trade. The DOW rose +0.2%, the S&P 500 gained +0.6%, and the NASDAQ advanced +1.5%. Gains were led by chip stocks, with Micron (+9.0%), Nvidia (+2.0%), and Intel (+13.1%) higher on renewed AI demand optimism. Intel jumped after reports that Google had placed an order for the company to manufacture more than three million of its in-house Tensor Processing Unit (TPU) chips, with production set to begin in 2028. Apple fell -1.1% as investors were underwhelmed by its WWDC AI announcements. The company unveiled a rebranded ‘Siri AI’ at WWDC 2026, its push to catch up with AI rivals, but the stock reversed from intraday gains to losses during the keynote. Tesla (+5.5%) rallied ahead of Friday’s SpaceX IPO. In rates, the US two-year yield fell -1bp to 4.15%, while the 10-year yield gained +1bp to 4.55%, with markets continuing to digest Friday’s blowout May jobs report that pushed pricing towards a Fed hike by year-end.
Europe and London on opposite sides of the unchanged
European equities ended subdued on Monday as renewed Middle East strikes, higher oil prices, and rate concerns weighed on sentiment. The Stoxx Europe 600 slipped -0.1%, while London’s FTSE 100 finished +0.1% higher. In London, Tate & Lyle (+15.0%) surged after agreeing to a £2.7b takeover by Ingredion, while housebuilders weakened on rate concerns. European technology stocks ASML and Infineon Technologies rose +3.6% and +1.2% respectively.
Australia closed for King’s Birthday, Asian markets tumble
Japan’s Nikkei 225 fell -3.9%, while Hong Kong’s Hang Seng lost -1.2% and South Korea’s KOSPI plummeted -8.3%. China’s CSI 300 lost -2.1%, while the Shanghai Composite fell -1.7%. Australia’s ASX 200 was closed for the King’s Birthday public holiday. New Zealand’s NZX 50 fell -0.9%.
WTI Crude and Gold up, Iron Ore flat
WTI Crude gained +0.6% to US$91.12/bbl, Gold rose +0.2% to US$4,337.85/oz, Iron Ore remained flat at US$102.00/MT.
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