Asian stocks seen higher as US chip rally lifts sentiment
Asian equities were set for gains on Friday after a strong rally in US chipmakers drove the Nasdaq Composite up 1.27% on Thursday, offsetting concerns over renewed US Iran tensions, while oil prices opened lower.
The rebound in semiconductor shares, led by Micron Technology and other AI focused names, supported broader US indices and is expected to underpin risk appetite in Asian trading.
Market overview
| Index | 10 Jul 2026 Close | Move & % Change | Comments |
|---|---|---|---|
| S&P 500 | 7,541.83 | +59.12 pts (+0.79%) | Advanced as chip stocks lifted the broader market. |
| Nasdaq Composite | 26,198.76 | +328.11 pts (+1.27%) | Ended sharply higher, led by semiconductor and AI related shares. |
| Dow Jones Industrial Average | 52,481.70 | +133.31 pts (+0.25%) | Posted modest gains, lagging tech heavy indices. |
- US benchmarks closed higher despite rising geopolitical tensions in the Middle East.
- Chip sector strength outweighed worries about potential inflation from conflict related oil risks.
- Asian stock futures pointed to a positive open, according to regional market indications.
Key movers
| Top Gainers | Sector | Notable Factor |
|---|---|---|
| Hewlett Packard | Technology | S&P 500 top gainer, rose 9.92%. |
| Norwegian Cruise Line | Consumer discretionary | Gained 6.90% in the S&P 500. |
| Lam Research | Semiconductors | Climbed 6.01%, tracking chip rally. |
| Invesco | Financials | Added 5.83% in the index. |
| Top Losers | Sector | Notable Factor |
|---|---|---|
| Coterra Energy | Energy | Fell 8.62%, weakest S&P 500 constituent. |
| Align Technology | Healthcare | Dropped 5.69%. |
| APA | Energy | Declined 5.05%. |
| Costco Wholesale | Consumer staples | Lost 4.21%, hit six month low on slower June sales. |
- Micron Technology jumped after unveiling a US investment plan exceeding $250 billion through 2035.
- Micron aims to tap rising memory demand from artificial intelligence applications.
- Applied Materials and Sandisk also surged, reinforcing semiconductor momentum.
- Meta Platforms rose after plans to start manufacturing AI chips from September.
- “This is still very much an AI bull market” Ross Mayfield, investment strategy analyst at Baird.
Sectoral action
| Sector/Index | Direction (approx.) | Key Drivers |
|---|---|---|
| PHLX Semiconductor Index | up, second straight gain | Boosted by Micron’s AI led capex plan and broader chip demand optimism. |
| Energy stocks | down | Weighed by declines in names like Coterra Energy and APA. |
| Consumer staples | down | Pressured by Costco’s weaker comparable sales in June. |
- The PHLX chip index logged a second consecutive positive session.
- AI related stocks remained volatile but supported overall market levels.
- Oil prices opened lower on Friday, easing some inflation concerns.
Macro and policy backdrop
| Statistic | Value/Change | Context |
|---|---|---|
| US weekly jobless claims | Fell last week | Signals a stable labour market despite slower June job growth. |
| Fed June meeting decision | Rates unchanged | Minutes showed some support for a hike before consensus to hold. |
| Fed rate expectations | 25 bps hike by December | Traders pricing in tightening via CME FedWatch tool. |
| S&P 500 valuation | 20x expected earnings | Down from 21x a month earlier ahead of earnings season. |
- The Federal Reserve, under Chair Kevin Warsh, kept policy rates steady in June.
- Minutes indicated a minority saw a case for near term rate increases.
- Strong labour data reinforced expectations that the Fed can tighten later in 2026.
- Analysts expect 24% year on year S&P 500 earnings growth, led by technology.
Geopolitical and global cues
| Market/Asset | Movement | Notes |
|---|---|---|
| Middle East conflict risk | Rising | Tehran reported strikes on US targets in Kuwait, Qatar, Bahrain. |
| Oil prices | Opened lower Friday | Eased immediate inflation fears despite regional tensions. |
- Renewed US Iran hostilities raised concerns about prolonged conflict.
- Investors weighed potential energy market disruption against current oil softness.
- Asian traders will track crude and US yields alongside chip sector cues.
Frequently Asked Questions
Why are Asian stocks expected to open higher today?
Asian equities are seen firmer because US markets, especially the Nasdaq, closed sharply higher on Thursday, driven by a strong rally in chipmakers such as Micron Technology and lower opening levels in oil prices.
What triggered the rally in US semiconductor stocks?
Micron Technology announced plans to invest more than $250 billion in US facilities through 2035 to meet rising memory chip demand from artificial intelligence, lifting sentiment across the semiconductor sector and related AI stocks.
How are geopolitical tensions affecting market sentiment?
Reports of renewed US Iran attacks and Iranian strikes on US targets in Kuwait, Qatar and Bahrain have raised concerns about prolonged Middle East conflict and potential inflation via energy markets, but for now chip sector strength has outweighed these worries.
Disclaimer
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