US equities advanced as softer US producer inflation led to a dovish repricing by the Federal Reserve, supporting the S&P 500 near record highs [1]. The S&P 500 rose by +0.38%, marking its second consecutive daily gain, despite a notable drag from semiconductor stocks, as the Philadelphia Semiconductor Index fell -2.08% [1]. BlackRock was a standout performer, surging +6.63% after reporting earnings that beat expectations, making it the second-best performer in the S&P 500 for the day [1]. The NASDAQ also posted gains, up +0.62%, while the Mag-7 group of mega-cap tech stocks rallied +2.31%, led by Apple, which climbed +4.01% after receiving government approval to roll out Apple Intelligence in China [1].
In contrast, Asian markets experienced significant declines, particularly among chip stocks. The KOSPI dropped -6.55%, reaching a two-month low and having fallen over -25% since its peak less than a month ago [1]. Japan's Nikkei index fell -2.48%, while China's CSI 300 and Shanghai Composite declined -0.91% and -0.82%, respectively [1]. The Hang Seng Index was an exception, rising +1.93% [1].
In Europe, bond yields edged higher, with 10-year bunds up +0.7 basis points, OATs up +1.8 basis points, and BTPs up +2.6 basis points [1]. The STOXX 600 managed a modest gain of +0.10%, while the DAX and FTSE-MIB saw larger declines of -0.59% and -0.85%, respectively [1].
Overall, the market reaction was mixed, with US equities buoyed by positive earnings and softer inflation, while global chip sector weakness weighed on Asian and some European indices [1].
CONCLUSION
Softer US inflation and strong earnings from companies like BlackRock and Apple supported US equities near record highs, despite ongoing weakness in semiconductor stocks. Asian markets, particularly those with significant chip exposure, saw sharp declines, highlighting divergent regional performance. The overall market takeaway is that positive US data and earnings are offsetting sector-specific and regional headwinds.