BANGKOK – On Friday, shares saw gains in both Europe and Asia, spurred by a record-setting performance from the Dow Jones Industrial Average. Notably, key stocks connected to artificial intelligence showed mixed results, with some rising while others continued to face declines.
Futures for the S&P 500 were up by 0.4%, and those for the Dow showed a 0.2% increase, even as U.S. markets remained closed for the Independence Day holiday.
In early European trading, notable stock indices climbed: Germany's DAX increased by 0.7% to reach 52,643.30, while the CAC 40 in Paris rose by 0.3% to 8,497.30. The UK's FTSE 100 experienced a 0.4% gain, closing at 10,689.77.
Asian markets also reported gains following significant losses earlier in the week. South Korea's Kospi, which had sunk nearly 8% on Thursday, rebounded by 5.8% to 8,088.34. Major tech player Samsung Electronics rose by 8.2%, and its competitor SK Hynix jumped 10.9%. Meanwhile, Japan's Nikkei 225 advanced 1.5% to 69,744.07, aided by notable performances from chipmaker Tokyo Electron, which rose by 0.4%, and memory maker Kioxia, which surged 9.2%.
The Hong Kong market also saw positive movement, with the Hang Seng climbing 1.3% to 23,345.28, and the Shanghai Composite index adding 0.4% to 4,043.64. Taiwan's Taiex saw a modest increase of 0.1%, while the Sensex in India advanced by 0.7%. In Australia, the S&P/ASX 200 rose by 1.4% to 8,844.40.
Stephen Innes of SPI Asset Management noted that Asian stocks seemed to stabilize after two challenging sessions led by technology stocks. He highlighted the swift recovery of the Korean market, emphasizing how quickly it can rebound after falling sharply.
Back in the U.S., the Dow set another record with a 1.1% gain, closing at 52,900.07. However, the performance of computer chip companies and others linked to the AI boom resulted in mixed outcomes for the stock indices. The S&P 500 ended virtually unchanged, slightly increasing less than 0.1% to close at 7,483.24, despite a majority of stocks—seven out of every ten—within the index recording gains. Conversely, the Nasdaq composite experienced a drop of 0.8%, closing at 25,382.67.
U.S. labor data indicated that employers added 57,000 jobs to their payrolls last month, which while positive for the economy, fell short of the anticipated 100,000 jobs. This slowdown in hiring could alleviate pressures on inflation, especially given the recent increases in oil prices driven by geopolitical tensions related to the war with Iran. As oil prices fall back below pre-war levels, there are hopes that inflation may decrease in the coming months, potentially lessening the Federal Reserve's inclination to raise interest rates multiple times this year.
The anticipated stabilization of interest rates would likely be welcomed by investors, as lower rates tend to enhance economic performance by making borrowing less costly for households and businesses. This dynamic typically supports rising stock prices across various markets.
Moreover, stocks in the cryptocurrency sector showed strength following a roughly 2% rise in Bitcoin, particularly after a previous decline that brought it near its lowest levels since 2024. Companies like Robinhood Markets and Coinbase Global saw their stock prices rise by 3.8% and 3.9%, respectively. Bitcoin itself had an early Friday increase of 0.5%.
Despite some positive trends, concerns over the performance of computer chip stocks continued to weigh on market indexes. Shares in companies like Micron Technology faced significant selling pressure, with Micron dropping by 5.5% after a notable decline of 10.6% the day before. Nvidia also faced a 1.4% decrease, and Lam Research sank 10.2%, contributing to the mixed performance of the S&P 500.
Key players like Nvidia, now valued at nearly $4.7 trillion, continue to heavily influence stock movements, indicating the substantial impact of tech stocks on broader market performance.
In other trading news on Friday, Brent crude, the international standard for oil, rose by 0.6% to $72.26 per barrel, while U.S. benchmark crude increased by 0.5% to $69.05 per barrel. The dollar saw declines against the Japanese yen, falling to 160.97 from 161.11 yen, while the euro appreciated against the dollar, rising to $1.1450 from $1.1431.
