Global markets rise in tech stock rally as oil prices fall

Markets rally as oil prices fall

Global markets traded positively on Monday, supported by a rally in technology stocks and falling oil prices, Anadolu reports. US President Donald Trump said he considered the likelihood of a strike on Iran to be low, which reduced perceived risks, and Brent January futures fell 1.1% to $91.5 per barrel.

Inflation expectations and monetary policy

Federal Reserve officials noted that services inflation remains a problem amid stable employment: layoffs are limited and the economy is growing, but they urged caution ahead of the release of October inflation data. Short-, medium- and long-term inflation expectations among American consumers remained unchanged — at 3.9%, 3.3% and 3%, respectively. The yield on 10-year US Treasury bonds held near 4.87%, the dollar index stood at 101.6, and gold fell 0.6% to $4,114 per ounce amid expectations of tighter monetary policy.

Tech rally in the US, Europe and Asia

Technology stocks led the New York Stock Exchange: Apple rose 2.4%, Microsoft 2.8%, Alphabet about 1%, Amazon 3%, and Meta 5.1%. Elon Musk's Tesla and SpaceX shares gained almost 6%, recovering part of last week's losses. Chipmakers posted particularly strong gains: AMD +13.3%, Broadcom +8.8%, Micron +6.3%, Intel +5.5%. The exception was Nvidia, whose shares fell 4.3% after the company launched an independent investigation into reports that its founder and CEO Jensen Huang had been the target of a foreign intelligence service.

European and Asian indices

European markets closed Monday higher, with the rally spilling over into other sectors on the back of corporate earnings that beat expectations: the DAX 40 gained 1.73%, the FTSE 100 1.02%, the CAC 40 1.16%, and the FTSE MIB 30 2.69%. UniCredit shares rose 6.3% after the bank's third-quarter profit and revenue exceeded forecasts. Eurogroup President Kyriakos Pierrakakis said that the candidates nominated by the Spanish and Dutch presidencies for the post of ECB head would be presented at a meeting, as Christine Lagarde's term is expiring. The eurozone investor confidence index fell 0.3 points in November to 2.4 points, coming in below forecasts.

China data and the Asian session

Risk appetite also rose in Asia: the Nikkei 225 gained 2.5%, the Kospi 3.8%, the Shanghai Composite 0.1%, and the Hang Seng 0.3%. Among the leaders were SK Hynix (+6.5%), Samsung Electronics (+4.5%) and Kioxia (+7.5%). China's exports grew 35.2% in October, below forecasts, driven by high demand for AI and technology products, while imports rose 41.6%, exceeding estimates; according to the outlet, export growth slowed compared with September due to an alleged slowdown in AI development. China's trade surplus narrowed from $133.5 billion in September to $105.3 billion in October, against a forecast of $125.8 billion, amid a stronger yuan and rising oil imports.

What's next

The key event for markets this week remains the October US inflation data, which regulators and investors urge approaching with caution. For now, the tone is being set by the technology sector and the easing of geopolitical tensions around Iran, which was reflected in oil prices.