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(Bloomberg) — The Nasdaq 100 is poised to wipe out December’s losses as revived appetite for technology stocks powered gains across equity markets. Gold, silver and copper climbed to record highs.
Nasdaq 100 futures rose 0.6%. Micron Technology Inc. climbed more than 3.7% in premarket trading while Oracle Corp. and most members of the Magnificent Seven megacaps advanced. Tech and mining shares outperformed in Europe. In Asia, benchmarks most exposed to artificial-intelligence demand, including South Korea’s Kospi, also led gains. S&P 500 contracts were up 0.4%.
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The focus in commodities went beyond record-setting metals, with oil climbing amid heightened geopolitical tensions after the US stepped up a blockade on Venezuela. Global bond markets remained under pressure, led by a second day of losses in Japanese debt. The dollar fell.
Optimism for a year-end rally in equities is growing after dip buyers late last week supported a rebound in US stocks. While some doubts about the AI trade and elevated valuations persist, confidence in the economy and corporate earnings is helping lift sentiment.
“Markets are riding a risk-on liquidity wave into year-end as resilient US growth underpins earnings next year, while a lower Fed fund rate eases financial conditions,” said Desmond Tjiang, chief investment officer for equities and multi-asset investment at BEA Union Investment. “Fears of AI capex and returns also recede on improving compute economics.”
Precious metals rallied, with their haven appeal boosted by geopolitical tensions and expectations of more Fed rate cuts. Looser monetary policy typically is a tailwind for gold and silver, which don’t pay interest.
Spot gold climbed more than 1.6% to break above its previous record of $4,381 an ounce set in October. Silver and copper also pushed to all-time highs, while platinum extended its rally to an eighth straight session.
“It has been very remarkable how precious metals’ prices have decorrelated from other assets in recent months,” said Roberto Scholtes, head of strategy at Singular Bank. “Earlier this year, gold prices were materially correlated to the dollar and to high-beta risk assets such as tech stocks and cryptos. But this has been waning gradually, and nowadays they’re running freely.”
Brent climbed above $61 a barrel, with US forces boarding one tanker and pursuing another one near Venezuela within weeks of first capturing a vessel. Washington has been stepping up pressure on Venezuela’s government, with President Donald Trump aiming to choke off its key revenue stream.
Japanese markets remained in focus after the central bank raised its benchmark interest rate to the highest in 30 years on Friday.
The yen, which had weakened to as much as 157.78 per dollar, found some strength as Atsushi Mimura, the nation’s chief currency official, said he was “deeply concerned” about what he termed as “one-directional, sudden moves.”
Japan’s benchmark 10-year yield rose to its highest level since February 1999 amid speculation that policymakers could pursue a more aggressive pace of rate hikes. The 10-year US Treasury yield rose 2 basis points to 4.17%.
Corporate News
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China Vanke Co., once the country’s biggest developer before it succumbed to an unprecedented property crisis, won last-minute support from creditors to extend a bond grace period in a reprieve that helps it avoid default, at least for now.
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Netflix Inc. refinanced part of a $59 billion bridge loan with cheaper and longer-term debt, bolstering the financial package underpinning its bid for Warner Bros. Discovery Inc.
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Harbour Energy Plc agreed to acquire LLOG Exploration Co. for $3.2 billion, marking the UK company’s entry into the deepwater US Gulf of Mexico.
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A group of private equity firms led by Permira and Warburg Pincus has agreed to acquire Clearwater Analytics Holdings Inc. in a deal valuing the investment and accounting software maker at $8.4 billion including debt.
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Sandbrook Capital is buying United Utility Services from Bernhard Capital Partners in a play to profit from growing demand for electricity and a boom in US grid investment.
WATCH: HSBC’s Willem Sels discusses artificial intelligence and the capex cycle. “Investment is going to the delta, so the growth rate of investment is going to slow,” he tells Bloomberg.Source: Bloomberg
Some of the main moves in markets:
Stocks
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S&P 500 futures rose 0.4% as of 7:37 a.m. New York time
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Nasdaq 100 futures rose 0.6%
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Futures on the Dow Jones Industrial Average were little changed
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The Stoxx Europe 600 fell 0.2%
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The MSCI World Index was little changed
Currencies
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The Bloomberg Dollar Spot Index fell 0.2%
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The euro rose 0.2% to $1.1739
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The British pound rose 0.4% to $1.3429
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The Japanese yen rose 0.2% to 157.42 per dollar
Cryptocurrencies
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Bitcoin rose 2.3% to $90,133.03
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Ether rose 2.8% to $3,058.23
Bonds
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The yield on 10-year Treasuries advanced two basis points to 4.16%
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Germany’s 10-year yield advanced one basis point to 2.91%
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Britain’s 10-year yield advanced one basis point to 4.53%
Commodities
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West Texas Intermediate crude rose 2.1% to $57.70 a barrel
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Spot gold rose 1.6% to $4,409.17 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Shikhar Balwani and Macarena Muñoz.
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