Global equities finished the week on a strong footing, driven by a powerful rally in technology stocks. The S&P 500 climbed 1.2%, while the tech‑heavy Nasdaq Composite surged 2.3% as investors piled into AI‑related semiconductor names. This resilience came despite mixed economic signals from Europe and China, underscoring the market's conviction in the ongoing digital transformation.
In Europe, the Stoxx 600 index edged lower after flash PMI data fell short of expectations, hinting at a slowdown in manufacturing activity. Germany's DAX managed a modest gain, supported by strong auto exports, but the FTSE 100 was weighed down by a stronger pound. Across the Atlantic, the Nikkei 225 advanced on a weaker yen, which boosted exporters like Toyota and Sony.
Commodity markets were volatile. Brent crude slipped 1.8% amid concerns about demand from China, while gold held steady above $2,400 per ounce, reflecting persistent geopolitical uncertainty. Bitcoin, meanwhile, briefly touched $72,000 before settling near $71,234, as spot ETF inflows continued to provide a floor.
Analysts suggest that the market remains heavily dependent on central bank signaling. With the Federal Reserve holding rates steady but hinting at a possible September cut, liquidity conditions are expected to remain favourable for risk assets in the near term. However, the so‑called "last mile" of inflation remains a wildcard, and any hawkish surprise could spark rapid sector rotation.
Looking ahead, traders will focus on next week's consumer confidence report and a slew of speeches from Fed officials. Earnings season is winding down, but bellwethers like Nvidia and Microsoft continue to set the tone for tech spending. As always, the interplay between monetary policy, corporate earnings, and geopolitical developments will dictate the market's next move.