A strong rally in technology stocks increased risk appetite in global markets as concerns over artificial intelligence spending eased. Iran's announcement that it was holding talks with Oman on the Strait of Hormuz also eased perceptions of geopolitical risk, supporting markets.
New York stocks rise led by technology shares
Microsoft's better-than-expected financial results and strong revenue from its Azure cloud services lifted technology stocks. The company's shares gained 15.5%. Meta's shares fell 7.95% despite a 28% increase in second-quarter revenue, as net profit declined 14% and free cash flow weakened.
In the semiconductor sector, Micron Technology gained 18.4% and AMD rose 13%. The Dow Jones index advanced 1.19%, the S&P 500 gained 1.66% and the Nasdaq rose 2.78%.
The U.S. economy grew 1.5% in the second quarter, below expectations, while the core personal consumption expenditures index closely watched by the Fed rose 0.1% month on month. Although the number of initial jobless claims reached 197,000, it remained below expectations. The data increased optimism that the Fed could keep interest rates unchanged for longer.
The yield on the U.S. 10-year Treasury note fell 3 basis points to 4.65%, while the price of Brent crude declined 1.4% to $85.4 per barrel. The dollar index rose 0.1% to 100.2, while gold fell 0.5% to $4,082 per ounce.
Apple's shares fell 6.1% in after-hours trading after the company reported its results following the market close. Its net profit rose 27.1%, but it forecast a decline in sales due to supply-chain constraints. Amazon's net profit rose 244.9% to $62.6 billion, while its shares gained 10.4%.
Mining stocks stand out in European markets
European equities traded higher except in the United Kingdom, supported by better-than-expected corporate earnings and a rise in precious metals that boosted mining stocks. The Bank of England (BoE) kept its policy rate unchanged at 3.75%. The decision was approved by six votes to three, with three members voting in favor of a 25-basis-point increase.
Eurozone GDP grew 0.4% in the second quarter, exceeding expectations. Germany's inflation accelerated to 0.8% month on month in July, while GDP increased 0.9%. The DAX 40 rose 0.6%, the CAC 40 gained 0.92% and the FTSE MIB 30 advanced 1.29%, while the FTSE 100 fell 0.1%.
Technology rally continues to influence Asian markets
The technology rally in New York spread to Asian markets. In South Korea, SK Hynix shares gained 29.7%, while Samsung Electronics rose 25%. The Bank of Japan (BoJ) kept its policy rate unchanged at 1%, in line with expectations.
After falling 3.3% to 157.97 yesterday, the dollar-yen exchange rate rose 0.8% today to 160.7. Yesterday's sharp decline strengthened the possibility that Japanese authorities may have intervened in the foreign exchange market. Tokyo's consumer price index rose 2% in July, while industrial production exceeded expectations in Japan.
Near the close, the Nikkei 225 rose 4%, the Kospi gained 16% and the Shanghai Composite advanced 0.8%, while the Hang Seng fell 0.1%.
Selling pressure weighs on Borsa Istanbul
Borsa Istanbul's BIST 100 index ended the day down 1.55% at 13,292.93 points. The August contract based on the BIST 30 index rose 0.1% in the evening session on the Borsa Istanbul Futures and Options Market. The dollar traded at 47.4890 against the Turkish lira in the interbank market.
Analysts identified 13,200 and 13,100 points as support levels for the BIST 100, and 13,400 and 13,500 points as resistance levels. Domestically, financial accounts and monetary and banking statistics will be followed today; abroad, markets will monitor eurozone inflation, Germany's unemployment rate and the University of Michigan consumer sentiment index.
