Stock markets mixed as US tech stocks climb; EasyJet surges on takeover news

Global stock markets exhibited a meandering trend on Monday, July 6, 2026, as the quarterly earnings season commenced. US technology stocks, however, experienced a significant climb, led by the tech-heavy Nasdaq which gained 1.1 percent. This surge was partly driven by a rebound in semiconductor names, boosting the S&P 500.

The market mood had previously been dampened by worries over potentially overvalued AI-related companies. However, recent US jobs data, showing fewer jobs created than expected, eased fears of further interest rate hikes by the Federal Reserve to combat inflation. This week, traders are focused on the minutes from the Fed's latest policy meeting.

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Investors are not walking away from the AI story, but they are asking whether a sector priced for perfection can keep delivering.

"Investors are not walking away from the AI story, but they are asking whether a sector priced for perfection can keep delivering," noted Patrick Munnelly, a market strategist at Tickmill Group. Discussions are centered on when firms will see returns on the trillions invested in artificial intelligence and if valuations have outpaced reality.

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A few more tankers moving safely through Hormuz may take the edge off the immediate panic premium, but it does not undo the cost pressures already working their way through the global economy.

In Europe, markets were more cautious. Frankfurt ended marginally higher, while London and Paris both slipped 0.3 percent. A notable exception was British budget airline EasyJet, whose shares rose approximately 9.5 percent following an in-principle agreement for a 5.2 billion-pound takeover by US private equity firm Castlelake. The EasyJet board indicated they were "minded" to accept Castlelake's offer of £6.90 per share if a firm offer is made by August 3.

Elsewhere, Hon Hai, a Taiwanese maker of AI servers, reported a forecast-beating jump in second-quarter sales and predicted further growth. The firm, also known as Foxconn, is diversifying beyond assembling iPhones to producing AI servers for Nvidia, electric vehicles, and robots. The upcoming Wall Street debut of South Korean chip giant SK hynix, with its US$29 billion listing on Friday, also drew attention. Oil prices saw a slight decrease as tankers navigated the Strait of Hormuz, amid optimism surrounding US-Iran peace talks. However, analysts cautioned that the impact on global inflation might be gradual, with oil exports remaining below pre-war levels.

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oil exports remain well below pre-war levels and bottlenecks are likely to persist.