Tech stocks drive rebound as risk appetite returns

Stocks rallied, tracking gains in Asian markets as a tech-fueled rebound spread globally.

Europe’s Stoxx 600 index jumped 1%, led by gains in the technology sector. Futures for the S&P 500 and the dollar were flat. The MSCI Asia Pacific Index climbed the most in almost a month. Treasury yields ticked higher.

Risk appetite has returned after the world’s largest technology companies spurred a stock-market bounce on Wall Street on Wednesday. 

The European Central Bank is poised to cut interest rates again on Thursday, bringing its key rate a quarter-point lower to 3.5%. Still, policymakers are taking a cautious approach with inflation not fully vanquished.

“We still expect ECB to remain gradual in its approach, weighing the risk of growth and inflation,” said Camille de Courcel, head of European rates strategy at BNP Paribas SA

Resilient inflation and labor market data reinforce a measured course of action for the Federal Reserve too. In the wake of monthly consumer price date Wednesday, swap traders have fully priced in a quarter-point reduction at the Fed’s policy announcement next week, ditching bets on a half-point rate cut.

In corporate news, OpenAI is in talks to raise $6.5 billion from investors at a valuation of $150 billion, according to people familiar with the situation. Nvidia Corp. Chief Executive Officer Jensen Huang said the limited supply of their products has frustrated some customers and raised tensions.

Alimentation Couche-Tard Inc. is discussing improving its takeover proposal for Seven & i Holdings Co. with the goal of convincing the Japanese convenience store operator to start engaging in discussions, people with knowledge of the matter said. 

Oil extended gains from Wednesday as Hurricane Francine ripped through key oil-producing zones in the Gulf of Mexico, prompting traders to cover bearish bets. Gold traded above $2,515 per ounce.

Key events this week:

• ECB rate decision, Thursday
• US initial jobless claims, PPI, Thursday
• Eurozone industrial production, Friday
• Japan industrial production, Friday
• U. Michigan consumer sentiment, Friday

Some of the main moves in markets:

STOCKS

• The Stoxx Europe 600 rose 1% as of 9:27 a.m. London time
• S&P 500 futures were little changed
• Nasdaq 100 futures were little changed
• Futures on the Dow Jones Industrial Average were little changed
• The MSCI Asia Pacific Index rose 1.5%
• The MSCI Emerging Markets Index rose 1.2%

CURRENCIES

• The Bloomberg Dollar Spot Index was little changed

• The euro was little changed at $1.1017
• The Japanese yen fell 0.2% to 142.68 per dollar
• The offshore yuan was little changed at 7.1303 per dollar
• The British pound was little changed at $1.3046

CRYPTOCURRENCIES

• Bitcoin rose 1.4% to $58,320.66

• Ether rose 0.7% to $2,364.69

BONDS

• The yield on 10-year Treasuries advanced two basis points to 3.67%
• Germany’s 10-year yield advanced two basis points to 2.13%
• Britain’s 10-year yield advanced two basis points to 3.78%

COMMODITIES

• Brent crude rose 1.3% to $71.53 a barrel

• Spot gold rose 0.3% to $2,518.96 an ounce

This story was produced with the assistance of Bloomberg Automation.