U.S., European Stocks Surge on Tech Earnings, AI Optimism
U.S. and European stocks led a global market rally amid strong investor optimism, driven by top tech companies’ earnings releases and AI optimism.
A surge in AI optimism drove the dominant overnight narrative, as strong results from major US technology firms reignited conviction across global markets, First National Bank (FNB) said in a brief on Friday.
The S&P 500 gained 1.66%, the Nasdaq Composite surged 2.78%, and the Dow Jones rose 1.19% on Thursday, as blowout earnings from Microsoft (+15.51%) and Amazon (+8.85%), as well as a broader AI-chip rebound, powered the advance, even as second-quarter GDP growth came in at 1.5% annualised, below the 2.2% consensus.
European equities closed mostly higher, with the Euro Stoxx 50 advancing 1.53%, driven by strong earnings from banks, miners, and AI-linked stocks.
These included a 11% surge in Schneider Electric after it raised guidance, while the FTSE 100 slipped 0.1% as sharp declines in Rentokil and AstraZeneca weighed on the region.
In the Asia Pacific region, the Nikkei 225 surged 3.46% this morning, led by chip and AI-linked shares, while investors also digested the Bank of Japan’s (BoJ) decision to keep its policy rate steady at 1% and upgrade its economic outlook.
The ASX 200 edged up 0.07%, supported by materials stocks. The Hang Seng Index slipped 0.11%, a relative laggard as China’s official manufacturing PMI fell to 49.2 in July, missing the 50.1 forecast and slipping into contraction.
The Johannesburg Stock Exchange (JSE) is set for a positive open this morning as global futures point firmly higher on renewed artificial intelligence (AI) optimism.
However, investors are likely to remain cautious while monitoring headlines about the US-Iran conflict. Tencent Holdings rose 0.34% in Hong Kong, a move that carries a positive read-through for Naspers and Prosus.
The ASX 300 Metals and Mining Index is up 1.49%, lending support to resource counters. However, spot gold is softer this morning, weighing on gold miners, while platinum has retreated more meaningfully, placing pressure on precious metal counters as well.
The JSE closed firmly higher on Thursday with green screens all round, led by a powerful surge in resource stocks. The All-Share Index gained 1.30% to close at 111 873, while the Top 40 rose 1.40% to 103 759.
Resources (+3.24%) were the standout performer in yesterday’s session, driven by strength in the Precious Metals & Mining Index (+3.43%).
Industrials (+0.19%) posted modest gains, extending their positive run for the fifth consecutive session and are on track to post a monthly gain. Financials (+1.01%) reversed losses from the previous session and are on track to post a weekly gain. Meta Earnings Under Pressure in Q2, Revenue Up, Profit Dips
