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Stocks rise on renewed tech interest, shrugging off regional tensions
🇸🇬 Singapore /Economy & Trade

Stocks rise on renewed tech interest, shrugging off regional tensions

From CNA · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Global stock markets rose, led by technology stocks, as investors brushed off geopolitical tensions in the Middle East.
  • Increased oil production outside the Gulf region has lessened the impact of regional disruptions, according to an analyst.
  • SK hynix's planned US listing is oversubscribed, boosting tech stocks despite concerns over AI investment returns and a setback for AstraZeneca shares.

Global stock markets displayed resilience on Thursday, with major indexes closing higher as investors renewed their interest in technology shares. This positive trend occurred despite a fresh exchange of strikes between the United States and Iran, indicating that market participants are increasingly unfazed by regional conflicts. The Nasdaq Composite in New York saw a significant jump of 1.3 percent.

Any disruption in the region is not as harmful as before.

— Christopher LowFHN Financial analyst Christopher Low explaining why Middle East tensions are having less impact on oil prices.

Analysts suggest that increased oil production outside the Middle East has diminished the impact of any potential disruptions in the region. "Part of the story that people are missing is just how much oil production has increased outside of the Gulf" since the start of the conflict, noted Christopher Low of FHN Financial. This suggests that the global economy is less vulnerable to Middle East instability than in the past.

Investor sentiment was further bolstered by strong demand for South Korean chip giant SK hynix's planned US listing, which is reportedly seven times oversubscribed. This indicates a continued appetite for AI-related semiconductor companies, encouraging a return to tech stocks. However, concerns about stretched technology valuations and the timeline for AI investment returns persist, particularly in markets like Seoul, which has seen a significant correction from its June peak.

Part of the story that people are missing is just how much oil production has increased outside of the Gulf

— Christopher LowFHN Financial analyst Christopher Low explaining the reduced impact of Middle East disruptions on the global economy.

In Europe, Paris and Frankfurt markets closed higher, though London experienced a downturn. This was largely due to a sharp fall in AstraZeneca shares after its new heart drug failed to meet trial targets, marking a rare setback for the pharmaceutical giant. Oil prices saw a slight decrease, with Brent crude shedding 2.2 percent to $76.30 per barrel.

demonstrates continued investor appetite for AI-related semiconductor companies, which encouraged investors to return to tech stocks despite ongoing geopolitical uncertainty in the Middle East

— Angus CampbellTrade Nation's Angus Campbell commenting on the SK hynix listing and its impact on tech stocks.
DistantNews Editorial

Originally published by CNA in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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