US Tech Stocks Rise, Oil Prices Fall, Asian Equities Follow Higher

Global markets saw tech stocks rally, oil prices decline, and Asian equities follow suit higher. A surge in chipmakers pushed the Nasdaq 100 to its highest level since June. Meanwhile, progress in diplomatic efforts to end the conflict with Iran weighed on oil prices, lending support to equities.

The MSCI Asia Pacific Index rose 0.3%, marking its sixth consecutive trading day of gains. Japanese markets were closed for a holiday. Leading chip stocks including Samsung Electronics and SK Hynix advanced.

Shopify Inc. jumped 7.1% after announcing a partnership with Meta Platforms Inc. to launch its new Muse AI agent. However, fears that artificial intelligence could erode profit margins and fee income for financial brokerages triggered a sell-off in US financial stocks, dragging down other major indices.

In commodities, Brent crude fell as much as 1% before paring some losses and trading near $99.10 per barrel. US President Trump stated that US officials held a “very good” meeting with Iranian envoys, and Washington reaffirmed efforts to end the conflict. Gold and the FXCG US Dollar Index retained gains from the prior session. US Treasury cash trading was suspended due to the Japanese holiday.

Tech stocks are reclaiming their leadership role across global markets, with chipmakers once again the primary driver of share-price gains. Economic data releases are light this week. Whether tech stocks can extend their rally will hinge on whether diplomatic progress keeps oil prices lower and eases pressure on bond yields. Investors are also watching the summit between President Trump and President Xi Jinping for signs of progress on trade and other economic disputes.

Earlier this week, chipmakers surged on early positive signals around Meta’s AI agent. Still, shares of several Asian consumer firms — including large banks, insurers and online travel operators — may face headwinds. Investors worry Meta’s Muse could disrupt businesses that rely on so-called consumer inertia.

Consumer inertia refers to the tendency for people to keep buying a product out of habit, even when better alternatives exist.

Crude oil remains another key market focus. Saudi Arabia has restarted a critical oil pipeline, while the US reported progress in talks with Iran aimed at ending the war that has destabilized Middle East supply.

Investors are also parsing comments from Federal Reserve officials for clues on the path of interest rates after the central bank raised rates by 25 basis points last week.

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