Chipmakers’ stocks are rising: what’s happening in global markets
27 April 11:49
Global markets started the week with mixed signals: Brent crude jumped to a three-week high amid tensions surrounding Iran and the Strait of Hormuz, while tech stocks are rising on a wave of optimism regarding artificial intelligence. This was reported by "Komersant Ukrainian", citing Reuters.
Chipmakers’ stocks are driving markets higher
Despite the oil shock, stock markets received strong support from the tech sector. Investors are once again actively buying shares of companies involved in semiconductor manufacturing and artificial intelligence development.
Stock indices in Taiwan, Japan, and South Korea have hit record highs. These markets have benefited from high demand for shares of companies that manufacture chips or participate in the global supply chain for the artificial intelligence sector.
Intel’s second-quarter revenue forecast provided an additional boost. The company expects results that exceed Wall Street’s forecasts, which has fueled optimism across the entire semiconductor sector.
Mike Seidenberg, portfolio manager of the Allianz Technology Trust, said investors remain very optimistic about artificial intelligence.
“Artificial intelligence is something people are very optimistic about and largely view as a winning sector,” he said.
Investors are awaiting earnings reports from Microsoft, Alphabet, Amazon, Meta, and Apple
This week, markets are awaiting financial results from the largest U.S. technology companies. Among them:
- Microsoft;
- Alphabet, Google’s parent company;
- Amazon;
- Meta Platforms;
- Apple.
Investors will pay particular attention not only to earnings but also to capital expenditure plans. The markets want to understand how much these tech giants are willing to invest in the development of artificial intelligence, data centers, cloud services, and new infrastructure.
According to Reuters estimates, companies that together account for about 44% of the S&P 500 index’s market capitalization are set to release their earnings reports this week. Therefore, the coming days could be decisive for sentiment in the U.S. stock market.
Watch us on YouTube: important topics – without censorship
Currency markets remain subdued
There were no significant fluctuations in the currency market. The euro traded near $1.1725, and the Japanese yen at 159.26 per dollar.
Bond markets also remained relatively calm ahead of decisions by major central banks.
Central banks may leave rates unchanged
Another key topic of the week is central bank meetings. Decisions are expected from regulators in Japan, the U.S., the U.K., Europe, Canada, and some emerging markets.
Major central banks are not expected to change rates for now. The Bank of Japan is forecast to keep its short-term rate at 0.75%. The U.S. Federal Reserve is also likely to leave its rate unchanged.
At the same time, investors will be closely monitoring the rhetoric of central banks. If regulators adopt a more hawkish tone due to high oil prices and inflation risks, markets may revise their expectations regarding future policy.
Read us on Telegram: important topics – without censorship
