Key facts
- Wall Street stocks advanced on Monday, with the Nasdaq leading gains.
- Semiconductor stocks saw significant gains, with AMD, Qualcomm, and Taiwan Semiconductor rising over 4%.
- Broadcom extended its custom chip partnership with Apple through 2031.
- Microsoft plans to cut approximately 4,800 jobs.
- Lockheed Martin will acquire Ultra Maritime for $3.45 billion.
- Crude oil prices declined slightly.
- China conducted a submarine-launched missile test in the Pacific.
- The European Stability Mechanism warned of increased Eurozone recession risk.
U.S. stocks advanced on Monday, with the technology-heavy Nasdaq Composite leading the gains, driven by a rebound in semiconductor shares. Major chipmakers like AMD, Qualcomm, and Taiwan Semiconductor saw increases of over 4%. Broadcom announced an extension of its custom chip development partnership with Apple through 2031, while SK Hynix initiated a U.S. share sale to raise approximately $28 billion amid the AI boom.
In corporate news, Microsoft revealed plans to eliminate about 4,800 jobs, representing 2.1% of its global workforce. Lockheed Martin agreed to acquire naval defense company Ultra Maritime from private equity firm Advent for $3.45 billion, reflecting increased global demand for military technology.
European markets saw the STOXX 600 pull back from a record high. German industrial orders rose more than expected in May, suggesting easing fears of supply chain disruptions.
Crude oil prices eased, with front-month WTI and Brent futures settling down 0.2%, influenced by anticipated post-war supply increases. Gold prices retreated from a two-week high.
The U.S. dollar was largely unchanged, while the Japanese yen hovered near a level that could prompt intervention. U.S. Treasury yields remained stable after a recent soft employment report tempered expectations for further interest rate hikes.
Geopolitical tensions contributed to market sentiment. China test-fired a missile from a nuclear-powered submarine into the Pacific, drawing criticism from regional powers. The European Stability Mechanism warned that Middle East tensions and a potential U.S. asset selloff could tip the Eurozone into recession and push inflation higher.