Category: Market Summary

U.S. stock futures moved higher on Wednesday as markets attempted to recover from a sharp technology-led sell-off, while investors looked ahead to key earnings results and developments across the artificial intelligence sector for signs of continued momentum.

At the same time, lower oil prices and easing geopolitical tensions continued to provide support for broader market sentiment.

Wall Street Futures Regain Ground

After a difficult session for technology and semiconductor stocks, futures pointed to a more positive start on Wall Street.

By 08:22 GMT, Nasdaq futures had risen 0.5%, while S&P 500 futures gained 0.2%. Dow Jones futures, however, slipped 0.16%.

Investors were encouraged by stronger-than-expected business activity figures and a continued retreat in crude oil prices as concerns over disruptions linked to tensions between the United States and Iran eased.

Attention is now focused on Micron Technology (NASDAQ:MU), whose quarterly earnings are expected to provide insight into demand for AI-related hardware and infrastructure.

As one of the world’s leading memory-chip manufacturers, Micron is viewed as an important gauge of spending trends across data centres and advanced computing platforms.

Nvidia Hardware Commands Premium Prices in China

Demand for Nvidia’s (NASDAQ:NVDA) latest AI systems remains exceptionally strong despite ongoing U.S. export restrictions.

According to the Financial Times, Nvidia’s DGX B300 servers are being sold through unofficial channels in China for more than 8 million yuan ($1.1 million), roughly double the price seen six months ago.

The trend highlights the continued appetite for advanced AI computing power in China and reinforces Nvidia’s dominant role in the sector despite geopolitical restrictions.

Meta Faces Increased Government Oversight

Meta Platforms (NASDAQ:META) has reportedly been asked by the Trump administration to voluntarily submit its artificial intelligence models for federal review, according to the New York Times.

The report notes that Meta is currently the only major U.S. AI company not participating in the government’s evaluation framework.

The request follows a broader push by Washington to increase oversight of advanced AI technologies, particularly those with potential national security implications.

For investors, the development underscores the growing importance of regulation as a factor shaping the future of the AI industry.

Honeywell Aerospace Draws Attention Ahead of Index Inclusion

Honeywell Aerospace is set to join both the S&P 100 and S&P 500 following its separation from Honeywell International (NASDAQ:HON).

The company will replace Honeywell in the S&P 100 and take the place of Conagra Brands (NYSE:CAG) in the S&P 500 when the changes take effect on 29 June.

The prospect of index-related buying helped lift when-issued shares by more than 9% in after-hours trading.

Alphabet Added to the Dow

Alphabet (NASDAQ:GOOG) will become a member of the Dow Jones Industrial Average later this month, replacing Verizon (NYSE:VZ).

The move reflects Alphabet’s growing significance within the U.S. economy and the increasing role of artificial intelligence in shaping corporate growth and investment trends.

While the Dow comprises only 30 stocks, inclusion often boosts a company’s profile and can generate additional demand from benchmark-tracking investment funds.

European equity markets traded cautiously on Wednesday, with investors reluctant to take on additional risk following a sharp global decline in technology shares and continued concerns that interest rates could remain elevated for longer.

The pan-European STOXX 600 was broadly unchanged at the open. Germany’s DAX slipped 0.6%, while France’s CAC 40 edged 0.1% higher. Italy’s FTSE MIB and the UK’s FTSE 100 both fell 0.2%.

The subdued performance followed Tuesday’s technology-led sell-off, which pushed the STOXX 600 to its lowest level in more than a week. Market participants are increasingly reassessing whether current valuations and the scale of artificial intelligence-related investment can be justified by future earnings growth.

“FOMO was replaced with a fear of being burnt if the now expected chunky earnings numbers don’t continue to surge,” said Danni Hewson, head of financial analysis at AJ Bell.

She added: “Post-IPO stocks often enter a period of volatility as the market gets to grips with the new entrant, some investors rush to cash out, and others assess at what price they are willing to jump in.”

According to CME FedWatch data, bond markets are currently pricing in around 50 basis points of additional Federal Reserve tightening by the end of the year, with investors assigning nearly a 40% probability to a rate increase as soon as July.

For European investors, the prospect of tighter monetary conditions presents a difficult backdrop. Economic indicators across the Eurozone continue to point towards slower growth, while inflation remains elevated enough to limit the European Central Bank’s flexibility on interest rates.

In the UK, investors are also contending with political uncertainty following the resignation of Prime Minister Keir Starmer, adding another layer of complexity to an already challenging environment marked by weak growth and restrictive monetary policy.

Movers in Focus

SEGRO rallies after rejecting takeover proposal

SEGRO (LSE:SGRO) surged nearly 20% after turning down a takeover approach from Prologis (NYSE:PLD) valued at approximately $16 billion.

Saipem advances on merger progress

Saipem (BIT:SPM) gained 4% after receiving approval from Brazil’s competition authority for its planned merger with Subsea7 (TG:SOC).

Rheinmetall falls on contract concerns

Rheinmetall (TG:RHM) dropped 15% following reports that the German government may cancel a significant defence contract and instead award the work to TKMS.

FTSE 100 steadies as Berkeley cuts growth targets and Segro rejects a takeover bid. Brent crude weakens while gold advances.

Market Overview

UK markets were broadly steady at the open, with the FTSE 100 edging higher to 10,429.02. Across Europe, sentiment was weaker following a global technology sell-off and renewed concerns over the interest rate outlook. The Euronext 100 slipped 0.01 per cent to 1,900.85, while Germany’s DAX fell 0.59 per cent to 24,790.70. In the United States, the Nasdaq closed lower at 25,587.04 and the S&P 500 finished at 7,365.46 as investors reacted to the technology-led retreat and Federal Reserve uncertainty.

Commodity markets reflected easing geopolitical concerns after expectations of smoother crude flows through the Strait of Hormuz helped push oil prices lower. Copper and gold moved higher, while natural gas also advanced. Against sterling, the US dollar, euro and Swiss franc strengthened, while the Australian dollar and Japanese yen weakened. Bitcoin was unchanged against the pound.

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Market Numbers

FTSE 100: Up (+0.00%), 10,429.02

Euronext 100: Down (-0.01%), 1,900.85

DAX: Down (-0.59%), 24,790.70

NASDAQ: Down, 25,587.04

S&P 500: Down, 7,365.46

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In the Headlines

Profit Outlook Reset – Berkeley Group (LSE:BKG)

Berkeley reported annual profit below market expectations and revised its medium-term growth targets. The update highlights ongoing challenges in the UK housing market and could influence sentiment towards the wider housebuilding sector.

Takeover Rebuff – Segro (LSE:SGRO)

Segro rejected a £12.6 billion approach from a US rival, underscoring continued overseas interest in UK-listed assets. The move reinforces confidence in the company’s long-term strategy and valuation outlook.

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Currencies (vs GBP)

USD: Up (+0.00%), $1.32

CHF: Up (+0.03%), Fr.1.0689

EUR: Up (+0.01%), €1.16

JPY: Down (-0.01%), ¥213.2955

AUD: Down (-0.00%), $1.9089

Bitcoin (BTC/GBP): Unchanged £47,473.62

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Commodities

Copper: Up

Gold: Up

Brent Crude: Down

Natural Gas: Up

UK equities traded in a narrow and volatile range on Wednesday as investors balanced improving conditions in the Middle East against a broad global sell-off in technology and semiconductor stocks, while also monitoring the political transition following Keir Starmer’s resignation.

By 07:25 GMT, the FTSE 100 was up 0.09%, having moved between modest gains and losses during the session. Elsewhere in Europe, Germany’s DAX fell 0.65%, while France’s CAC 40 added 0.20%. Sterling weakened 0.05% against the US dollar to $1.3188.

Political developments remained in focus in the UK. Starmer has continued discussions with expected successor Andy Burnham as part of a planned leadership handover and is due to meet European leaders in Berlin later in the day to discuss Ukraine, NATO defence spending and developments in Iran ahead of next month’s NATO summit.

Meanwhile, geopolitical tensions appeared to ease further as shipping activity through the Strait of Hormuz gradually returned towards normal levels. Tanker movements increased as concerns over disruption from the Iran-Israel conflict moderated, helping reduce pressure on energy markets.

The improvement followed comments from US officials rejecting suggestions that Iran could impose fees on vessels using the waterway. Diplomatic efforts continued throughout the region, although conflicting statements from Washington and Tehran highlighted the fragile nature of the current situation.

Energy markets reflected the calmer backdrop. Brent crude declined 1.22% to $75.86 per barrel, while West Texas Intermediate crude fell 1.35% to $72.22. Precious metals also weakened, with gold futures down 1.14% at $4,102 and spot gold falling 0.61% to $4,084 per ounce.

Technology stocks remained under pressure globally as investors reassessed valuations across the sector, contributing to a more cautious tone in equity markets despite the reduction in geopolitical risk.

UK Corporate Highlights

Berkeley misses profit expectations

Berkeley Group (LSE:BKG) reported annual pre-tax profit below market forecasts as higher construction costs, slower development activity and cautious buyer demand weighed on profitability.

SEGRO rejects Prologis approach

SEGRO (LSE:SGRO) confirmed it had rejected an all-share takeover proposal from Prologis (NYSE:PLD) that valued the logistics property group at approximately £12.6 billion.

B&M appoints new finance chief

B&M (LSE:BME) named Asda executive Atheeq Akbar as its incoming Chief Financial Officer. He is expected to join the discount retailer in February 2027 as the company continues efforts to strengthen its UK operations.

Tech Sector Weighs on Wall Street Outlook

Wall Street is headed for a weaker start on Tuesday as investors continue trimming exposure to technology shares amid concerns that interest rates could stay higher for longer and that the massive capital required to support the artificial intelligence boom may become increasingly difficult to justify.

Nasdaq futures are leading losses following another sharp decline in SpaceX (NASDAQ:SPCX), while falling oil prices are also drawing attention as progress in U.S.-Iran negotiations eases fears over disruptions to global energy supplies.

At the same time, fresh deal activity in artificial intelligence and new government support for quantum computing highlight the intensifying race to secure leadership in next-generation technologies.

Nasdaq Futures Lead Market Lower

U.S. equity futures moved lower ahead of the opening bell, with technology stocks once again at the centre of the sell-off.

As of 4:33 a.m. ET, Nasdaq 100 futures were down 2.8%, while S&P 500 futures had fallen 1.45%. Dow Jones futures declined a more modest 0.7%.

The weakness reflects growing expectations that U.S. interest rates may remain elevated for longer than previously anticipated. Investors are also increasingly questioning whether the current pace of AI-related spending can be maintained indefinitely.

Having driven much of the market’s gains over the past year, technology and semiconductor stocks are particularly vulnerable to profit-taking and valuation reassessments.

SpaceX Pullback Continues

SpaceX (NASDAQ:SPCX) extended its decline after suffering a steep sell-off in the previous session.

The stock dropped 16.4% on Monday and fell another 2.9% in premarket trading.

The move followed a more cautious assessment from KeyBanc, which argued that the company’s valuation had become increasingly demanding following its powerful rally after going public.

Shares closed Monday at $154.59, only modestly above their IPO opening level of $150 and well below their recent peak above $225.

The decline erased roughly $400 billion in market value and has reignited debate over whether the company’s long-term growth prospects are sufficient to support its lofty valuation.

SpaceX also announced a senior notes offering and disclosed that it held more than $100 billion in cash and cash equivalents as of June 19.

Qualcomm Expands Its AI Ambitions

Qualcomm (NASDAQ:QCOM) is reportedly in advanced discussions to acquire AI chip startup Modular in a deal that could value the company at approximately $4 billion, according to Bloomberg.

The reported valuation is more than double the level achieved during Modular’s last funding round less than a year ago, underscoring the fierce competition for artificial intelligence assets.

Qualcomm has been expanding beyond its traditional smartphone business by targeting opportunities in data centres, AI and autonomous vehicles.

The company is also said to be exploring a separate acquisition involving AI startup Tenstorrent.

If completed, the transaction would further demonstrate how established technology firms are racing to strengthen their positions across the AI ecosystem.

Oil Prices Continue to Decline

Crude prices extended their losses after posting significant declines in the previous session.

Investors increasingly believe that progress in negotiations between Washington and Tehran could pave the way for additional Iranian oil supplies to reach global markets.

Sentiment improved after the United States issued a 60-day licence permitting the sale and import of Iranian crude and petroleum products as diplomatic discussions continue.

The move follows reports of progress toward a broader agreement and an extension of the current ceasefire arrangement.

Lower energy prices could help ease inflationary pressures, although prolonged weakness in crude markets may create challenges for energy producers.

Quantum Computing Gets a Boost

Quantum-computing stocks advanced after President Donald Trump signed a series of executive orders designed to accelerate the development of the technology in the United States.

The measures aim to deploy a research-capable quantum computer by 2028 and speed up the adoption of quantum-resistant cybersecurity systems across federal agencies.

Investors responded positively, lifting shares of companies including Infleqtion (NYSE:INFQ), Rigetti Computing (NASDAQ:RGTI), D-Wave Quantum (NYSE:QBTS) and IonQ (NYSE:IONQ).

IBM also moved higher after Trump praised Chief Executive Officer Arvind Krishna.

The initiatives signal growing recognition in Washington that quantum computing could become a strategically important technology over the coming decade.

Investors Look Beyond the AI Boom

While artificial intelligence remains the dominant theme across financial markets, investors are becoming increasingly selective about valuations and long-term growth assumptions.

Meanwhile, growing public-sector support for emerging technologies such as quantum computing suggests that the next wave of innovation may already be taking shape.

European Markets Open Lower

European stock markets moved lower on Tuesday as investor enthusiasm surrounding the U.S.-Iran peace agreement faded, with attention turning back to the prospect of elevated interest rates for an extended period.

The pan-European STOXX 600 declined 1%, while Germany’s DAX fell 1.3%. France’s CAC 40 and Italy’s FTSE MIB each lost 1%.

In the UK, the FTSE 100 dropped 0.7%.

UK Political Developments Remain in Focus

Investors continue to assess the political fallout from Prime Minister Keir Starmer’s decision to step down.

However, market reaction has remained relatively restrained, with analysts suggesting investors have largely accepted the likelihood of Andy Burnham emerging as the next leader.

The limited response from financial markets indicates that political uncertainty is not currently viewed as a major risk for UK assets.

Inflation and Interest Rates Return to Centre Stage

European equities remain close to record highs, but investor focus has shifted away from geopolitical developments in the Middle East and back toward inflation and monetary policy.

Market participants are increasingly concerned about the inflationary impact left by several months of conflict and whether central banks will need to maintain restrictive policies for longer than previously anticipated.

The European Central Bank has already delivered one rate increase this year, and investors continue to price in the possibility of another move before year-end.

PMI Data Seen as Key Near-Term Catalyst

Attention is now turning to the release of June purchasing managers’ index (PMI) data, which is expected to provide an updated picture of economic activity across the eurozone.

The data comes shortly after comments from ECB President Christine Lagarde, who stated that the inflation shock has been “large, but not yet large enough” to significantly alter longer-term inflation expectations.

Lagarde also stressed that there is currently no evidence of inflation becoming entrenched through second-round effects or broader de-anchoring of expectations.

Markets Reassess Central Bank Outlook

The initial optimism generated by the U.S.-Iran agreement has been tempered by renewed concerns about global monetary policy.

Investors are increasingly focused on the possibility that the U.S. Federal Reserve could maintain a more hawkish stance, prompting a broader reassessment of interest rate expectations across global markets.

As a result, sentiment in equity markets has become more cautious despite improving geopolitical conditions.

Earnings Season May Provide the Next Direction

With major geopolitical headlines losing influence, analysts believe the upcoming corporate earnings season could become the next significant driver for European equities.

Until companies begin reporting results and updating guidance, markets may struggle to establish a clear direction after the strong rally that pushed many indices toward record levels.

Heineken Advances After CEO Appointment

Among individual stocks, Heineken (EU:HEIA) outperformed the broader market, rising 1.5% after announcing the appointment of Rafa Oliveira as its new chief executive officer.

The gain contrasted with the broader weakness across European equities as investors welcomed the leadership transition.

UK and European Markets Move Lower

British equities traded lower on Tuesday as investors weighed the political implications of Prime Minister Keir Starmer’s resignation and considered the potential policy direction of a future government led by Andy Burnham.

By 07:31 GMT, the FTSE 100 had fallen 0.71%, while Germany’s DAX was down 1.35% and France’s CAC 40 had declined 0.85%. Sterling also weakened modestly, slipping 0.08% against the U.S. dollar to $1.3242.

Although markets initially welcomed the prospect of a swift Labour leadership transition, sentiment deteriorated as investors refocused on wider geopolitical risks and economic uncertainty.

Focus Turns to Potential Burnham Leadership

Attention has now shifted to the Labour leadership contest, with Andy Burnham widely viewed as the leading candidate to succeed Starmer.

If no significant challenger emerges, Burnham could become prime minister as early as 17 July.

Investors had initially responded positively to the reduced likelihood of a prolonged political contest, helping support UK government bonds during Monday’s session. However, that optimism faded as concerns surrounding global developments returned to the forefront.

U.S.-Iran Talks Continue to Influence Sentiment

Geopolitical developments remained a key driver of market activity across Europe.

Negotiations between U.S. and Iranian officials continued in Switzerland for a second day, although mixed messages from both sides left investors uncertain about the prospects for a lasting agreement.

U.S. Vice President JD Vance described the opening round of discussions as “very, very good” and said Iran had agreed to allow nuclear inspectors access to the country.

However, Iran’s foreign ministry indicated that substantive negotiations on the “nuclear issue” had not yet begun, highlighting the gap between the two sides.

Further uncertainty emerged after Iranian Parliament Speaker Mohammad Bagher Ghalibaf stated that the Strait of Hormuz “will never go back to the way it was before the war” and suggested Iran would exercise greater control over the strategically important shipping route.

His comments tempered optimism surrounding the memorandum of understanding signed on 17 June and reinforced concerns about future energy market disruptions.

Oil and Gold Prices Fall

Commodity markets also reflected the cautious mood.

Crude oil prices declined as traders monitored developments in the Middle East and assessed the likelihood of improved regional stability.

West Texas Intermediate crude fell 1.75% to $72.58 per barrel, while Brent crude dropped 1.72% to $76.19.

Precious metals also came under pressure, with gold futures falling 1.60% to $4,135.15 and spot gold declining 1.78% to $4,116.62 per ounce.

Telecom Plus Falls After Profit Warning

Among UK corporate movers, Telecom Plus (LSE:TEP), the owner of Utility Warehouse, came under pressure after warning that adjusted profit for FY2027 would be “meaningfully lower” as it embarks on a new five-year investment programme.

The company reduced its final dividend to 12 pence per share from 57 pence a year earlier, despite reporting record annual profit and customer growth.

Management said increased investment would support long-term expansion but would weigh on near-term profitability.

Ramsdens Agrees Takeover by FirstCash

Ramsdens Holdings (LSE:RFX) announced it had agreed to a recommended takeover by U.S.-based pawnbroking group FirstCash Holdings (NASDAQ:FCFS).

The transaction represents FirstCash’s first major move into the UK market and values Ramsdens at approximately £206 million.

Shares in Ramsdens surged following the announcement as investors welcomed the acquisition premium.

Unite Group Sees Major Shareholder Reduce Stake

Student accommodation specialist Unite Group (LSE:UTG) also attracted attention after its largest shareholder, CPPIB, reduced its holding to 7% from 14.08%.

The move resulted in the immediate departure of CPPIB-nominated director Thomas Jackson from the board.

Investors are expected to monitor any further changes to the company’s shareholder structure.

Bunzl Upgrades Revenue Outlook

Business supplies distributor Bunzl (LSE:BNZL) provided a more positive update, raising its revenue growth expectations for 2026 following a strong first-half performance.

The company cited improving conditions in North America as a key driver of growth, although management noted that higher fuel and freight costs linked to Middle East tensions continued to pressure margins.

Competition Regulator Targets StubHub UK

Elsewhere, Britain’s competition watchdog imposed a £900,000 fine on StubHub UK and ordered compensation for more than 50,000 customers.

The regulator found that the ticket resale platform had failed to properly disclose mandatory fees during the purchasing process, resulting in consumers paying more than initially advertised.

The decision forms part of broader efforts by regulators to improve transparency in online ticket sales and consumer pricing practices.

FTSE 100 steadies while European markets weaken. Telecom Plus cuts outlook, Bunzl upgrades guidance, and Brent crude edges lower.

Market Overview

UK markets opened mixed, with the FTSE 100 marginally higher at 10,438.24 from the previous close. Across Europe, sentiment weakened as the Euronext 100 fell 0.55 per cent and Germany’s DAX declined 1.26 per cent at the open. In the United States, the Nasdaq closed lower at 26,166.60 and the S&P 500 ended at 7,472.79. Investors continued to assess political uncertainty following Sir Keir Starmer’s resignation, alongside concerns that interest rates could remain higher for longer despite easing geopolitical tensions around Iran.

In commodities, gold traded higher while copper edged lower. Brent crude eased slightly as markets monitored reports surrounding Iranian oil exports, while natural gas was modestly firmer. Against sterling, the US dollar, euro, Swiss franc and Japanese yen strengthened, while the Australian dollar weakened. Bitcoin was lower versus the pound.

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Market Numbers

FTSE 100: Up (+0.00%), 10,438.24

Euronext 100: Down (-0.55%), 1,915.26

DAX: Down (-1.26%), 24,835.56

NASDAQ: Down, 26,166.60

S&P 500: Down, 7,472.79

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In the Headlines

Profit Warning – Telecom Plus (LSE:TEP)

Telecom Plus warned that FY27 profit is expected to be lower than previously anticipated and announced a dividend reduction despite reporting record FY26 results. The update prompted a sharp share price reaction as investors reassessed earnings expectations and cash returns.

Outlook Upgrade – Bunzl (LSE:BNZL)

Bunzl raised its outlook after benefiting from inflation-linked pricing and stronger sales volumes across key markets. The improved guidance suggests resilient demand conditions and provided support for the company’s shares.

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Currencies (vs GBP)

USD: Down (-0.00%), $1.3246

CHF: Down (-0.00%), Fr.1.0715

EUR: Down (-0.00%), €1.1593

JPY: Down (-0.01%), ¥214.0215

AUD: Up (+0.01%), $1.8941

Bitcoin (BTC/GBP): Down £47,484.91

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Commodities

Copper: Down

Gold: Up

Brent Crude: Down

Natural Gas: Up

U.S. equity futures traded modestly higher on Monday, pointing to a positive start for Wall Street as investors welcomed signs of progress in negotiations between the United States and Iran and a further decline in crude oil prices.

The upbeat tone follows strong gains recorded in the previous session, although market participants remain cautious as they wait for additional evidence that the emerging peace process can hold.

Oil Retreat Boosts Investor Confidence

Falling oil prices provided support for risk assets, easing concerns over inflation and the potential economic fallout from instability in the Middle East.

The move came after officials involved in talks between Washington and Tehran reported encouraging developments during discussions held in Switzerland.

Lower energy costs are viewed as a positive for households, businesses and financial markets, while also reducing pressure on central banks to maintain restrictive monetary policies.

Negotiators Highlight Positive Developments

Vice President JD Vance described the discussions as having achieved “great progress” despite a “little bit of threatening” and a “little bit of whining.”

He also referred to Iran’s decision to allow inspectors from the International Atomic Energy Agency back into the country as a “major milestone for the American people, and the first step in permanently denuclearizing or permanently ending a nuclear weapons program in Iran.”

Mediators from Qatar and Pakistan echoed that assessment, stating that “encouraging progress has been made” during the negotiations.

Inflation Data Remains Key Focus

While diplomatic developments helped improve sentiment, investors are still looking for firmer confirmation that the agreement can be sustained.

Attention is also turning toward upcoming U.S. inflation data, which could provide fresh clues regarding the future direction of Federal Reserve policy.

The absence of major economic releases at the start of the week may keep trading volumes relatively subdued.

Markets Build on Last Week’s Rally

Wall Street ended the previous session on a strong note, recovering from late weakness and extending gains throughout the day.

The Nasdaq advanced 1.9% to 26,517.93, while the S&P 500 gained 1.1% to 7,500.58. The Dow Jones Industrial Average rose a more modest 0.1% to 51,564.70.

For the holiday-shortened week, the Nasdaq climbed 2.4%, the S&P 500 gained 0.9% and the Dow added 0.7%.

Preliminary Agreement Raises Hopes for Lasting Peace

Investor optimism was supported by confirmation that the United States and Iran had signed a preliminary framework agreement aimed at ending the conflict in the region.

The memorandum of understanding signed by President Donald Trump and Iranian President Masoud Pezeshkian establishes a 60-day negotiation process intended to secure a permanent settlement.

Initial measures include the reopening of the Strait of Hormuz and the removal of the U.S. naval blockade on Iranian ports.

Falling Crude Prices Seen as Economic Tailwind

Russ Mould, investment director at AJ Bell, emphasized the broader significance of lower oil prices.

“That has huge significance for inflation and interest rates, as well as business, consumer and investor sentiment,” said Mould. “It takes the pressure off industries and households and is hugely positive for global economic growth.”

Intel Leads Technology Rally

Technology shares received an additional boost from Intel (NASDAQ:INTC), which surged 10.6% after President Trump said Apple (NASDAQ:AAPL) had agreed to collaborate with the chipmaker on semiconductor design and manufacturing in the United States.

The announcement helped propel the Philadelphia Semiconductor Index 6.4% higher to a record close.

Labour Market Remains Resilient

Recent economic data indicated continued stability in the U.S. labour market.

Initial jobless claims fell to 226,000 in the week ended June 13, down from a revised 230,000 the previous week and broadly in line with expectations.

The figures reinforced the view that employment conditions remain relatively strong.

Airlines Benefit from Lower Fuel Costs

Airline stocks were among the strongest performers as lower oil prices improved the outlook for fuel expenses.

The NYSE Arca Airline Index gained 3.8%, while computer hardware and housing-related stocks also posted notable advances.

By contrast, energy and gold shares underperformed as investors shifted toward more growth-oriented sectors.