The global markets have been a rollercoaster ride in the past 24 hours, with a mix of positive and negative developments. The S&P 500 snapped a three-day losing streak, rising 0.89%, while the Dow Jones and NASDAQ Comp also saw gains. This rebound was largely driven by the semiconductor sector, with chip names like Micron, Intel, and AMD rallying between 8% and 12%. The broader market was also supported by better-than-expected earnings from General Motors and 3M, which saw their shares rise by 4.9% and 7.3%, respectively.
However, the market's enthusiasm was tempered by the escalating tensions between the US and Iran. The US military carried out fresh strikes against Iran, with Iranian state media reporting explosions in several locations. This has raised concerns about a potential full-scale war, with regional mediators floating a 10-day ceasefire aimed at reviving negotiations. But US officials have downplayed the prospect of Trump accepting it.
In other news, China has expanded state support for tech ETFs amid a positive stock market PR offensive. South Korean investors, meanwhile, have cut leveraged positions to a three-month low after memory-chip losses stalled the market's rally. And, in a surprising turn of events, Oracle's default risk protection has hit a multi-year high as bonds sell off over AI investment payoff doubts.
The commodities market has also been in the spotlight, with copper soaring 2.9% to US$6.56/lb, now within ~2% of its 2-Jun record high. This was supported by strong Chinese buying and tight supply from disruptions across Chile and Peru. Gold also bounced 1.7% to US$4,079/oz, while WTI Oil saw a 2.26% increase to US$84.34.
In the ASX market, AMP has hired an adviser to explore a potential sale of its banking division, while Argosy Minerals has reported successful Rincon pilot testwork. Wesfarmers and its JV partner SQM have approved the FID for the Mt Holland lithium project expansion, adding a second concentrator with construction starting in H2 CY27. And, KMD Brands has guided FY26 sales and underlying EBITDA, with plans to divest its SE Asian manufacturing facility over 12 months.
Overall, the market sentiment seems to be shifting towards caution, with investors wary of the potential risks and uncertainties. As the week progresses, investors will be keeping a close eye on the geopolitical developments, earnings reports, and economic data releases. In my opinion, the market's volatility is likely to continue, with a focus on the balance between risk and reward.
