Stocks Extend Highs as TSMC Bolsters Tech Optimism: Markets Wrap

Greg Fleming, president and CEO at Rockefeller Capital Management, says that his clients remain focused on the market opportunity in artificial intelligence, even as uncertainty around the Iran war and energy market fallout persists. He speaks on Bloomberg Television. BloombergArticle content(Bloomberg) — Stocks set new highs as an upbeat forecast from Taiwan Semiconductor Manufacturing Co. added fuel to technology shares amid rising optimism that the US and Iran are seeking to extend a two-week truce.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentListen to the Bloomberg Daybreak Europe podcast on Apple, Spotify or anywhere you listen.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentFutures for the S&P 500 edged higher after the benchmark closed above the 7,000 mark for the first time. Nasdaq 100 contracts advanced 0.2% as TSMC raised its revenue outlook, highlighting the resilience of AI chip demand. Meanwhile, Elon Musk’s staff are seeking quotes and delivery times for chipmaking equipment for his envisioned Terafab, adding to the upbeat mood in tech.Article contentArticle contentBrent rose above $96 a barrel as movements through the Strait of Hormuz remained all but paralyzed. Global bonds rose, led by gains in Europe where central bank policymakers signaled they’re in no rush to raise interest rates. The dollar was little changed while gold rose toward $4,810 an ounce.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentStock markets are extending their stark turnaround as signs of easing tensions in the Middle East, combined with a fresh burst of AI optimism and corporate earnings have pushed investors to abandon their cautious views. Wall Street veteran Ed Yardeni said investors are looking past the war in the Middle East and focusing on market fundamentals. Article content“History shows that geopolitical crises turn out to be great buying opportunities,” Yardeni told Bloomberg TV. “That’s the situation we’re in right now where investors are looking past the war.”Article contentTechnology stocks also led gains in Europe as the Stoxx 600 rose 0.1%. A gauge for the sector in Asia climbed to a record high, while Taiwan’s total market cap climbed above $4.1 trillion to overtake the UK. The MSCI All Country index, which had dropped as much as 9% from the start of the war through to its low on March 30, erased all those declines.Article contentArticle content“TSMC describing AI demand as ‘extremely robust,’ pushing capex to the upper end of a $52-56 billion range, and signaling that the next three years of investment will significantly exceed the last three; that is not the language of a cycle nearing its peak,” said Amanda Lyons, information technology sector lead and head of research at Energy Group Capital.Article contentWhat Bloomberg’s Strategists Say:Article content“In the medium term, I worry the futures curve is too optimistic on commodity price declines and that markets haven’t priced the stagflationary impact of the war. In the near term though, these pressures may not come through yet, leaving equities without a clear downside catalyst.”Article content— Skylar Montgomery Koning, macro strategist. For the full analysis, click here.Article contentCorporate News:Article contentPernod Ricard SA expects the war in the Middle East to drive sales down as much as 4% for the year as it continues to struggle with weak demand in the US and China.Taiwan Semiconductor Manufacturing Co. booked a 58% surge in profit, a sign that the Middle East war in its first few weeks did not depress booming AI investment.Elon Musk’s lieutenants have reached out to chip industry suppliers including Applied Materials Inc., Tokyo Electron Ltd. and Lam Research Corp. for his envisioned Terafab, early steps in an audacious and likely arduous attempt to break into the production of cutting-edge chips.EasyJet Plc shares fell the most since 2022 after the UK budget airline warned of a loss in the first half of this fiscal year because of disruptions from the Iran war.Trending Trump isolation deepens on world stage as allies rebuff, condemn PMN Business The Great Correction: Not even Wayne Gretzky's hometown could escape the crash of the 'exurbs' Real Estate Posthaste: What Mark Carney's gas tax cut could mean for the Bank of Canada News What is Anthropic's Mythos AI model and why does it have the financial world in a panic? Innovation Forcing people to pay a moral tax if they leave the country won't inspire them to stay Personal Finance Article contentArticle contentSome of the main moves in markets:Article contentStocksArticle contentThe Stoxx Europe 600 rose 0.1% as of 9:27 a.m. London timeS&P 500 futures were little changedNasdaq 100 futures rose 0.2%Futures on the Dow Jones Industrial Average were little changedThe MSCI Asia Pacific Index rose 1.2%The MSCI Emerging Markets Index rose 1.2%Article contentCurrenciesArticle contentThe Bloomberg Dollar Spot Index was little changedThe euro fell 0.2% to $1.1779The Japanese yen was little changed at 159.04 per dollarThe offshore yuan was little changed at 6.8195 per dollarThe British pound was little changed at $1.3549Article contentCryptocurrenciesArticle contentBitcoin fell 0.3% to $74,639.7Ether fell 1% to $2,339.61Article contentBondsArticle contentThe yield on 10-year Treasuries was little changed at 4.28%Germany’s 10-year yield declined two basis points to 3.02%Britain’s 10-year yield declined two basis points to 4.80%Article contentCommoditiesArticle contentBrent crude rose 1.6% to $96.48 a barrelSpot gold rose 0.4% to $4,811.81 an ounceArticle contentThis story was produced with the assistance of Bloomberg Automation.Article content—With assistance from Neil Campling.Article contentShare this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Trump isolation deepens on world stage as allies rebuff, condemn PMN Business The Great Correction: Not even Wayne Gretzky's hometown could escape the crash of the 'exurbs' Real Estate Posthaste: What Mark Carney's gas tax cut could mean for the Bank of Canada News What is Anthropic's Mythos AI model and why does it have the financial world in a panic? Innovation Forcing people to pay a moral tax if they leave the country won't inspire them to stay Personal Finance