Yesterday, US stock indices closed mixed. The S&P 500 rose by 0.40%, and the Nasdaq 100 gained 0.46%. The industrial Dow Jones edged down by 0.04%.
Asian indices advanced as investors shifted their attention back to technology sector plays following a week largely dominated by the threat of a US-China trade war. The MSCI regional index climbed by 1.1%, supported by solid gains in South Korea, Japan, and Australia. This was partly driven by renewed interest in tech stocks after Dutch chipmaker ASML Holding NV reported earnings on Wednesday. The report added optimism that the artificial intelligence boom can still have a lasting impact on corporate profitability.
Gold prices soared to $4,242 per ounce, up more than 60% year-to-date, as trade tensions and expectations of further US Federal Reserve rate cuts drew buyers back to the safe-haven metal. The US dollar index declined for the third consecutive day, while US Treasury performance was mixed after the two-year yield dropped to its lowest level of the year on Wednesday.
The strong rally in Asian stocks signaled that investors remain optimistic about the region, despite renewed trade tensions between China and the United States. Asian equities have been one of the standout performers in global markets this year: the MSCI regional index has outpaced US benchmarks, gaining 23%.
Investors have grown so accustomed to political ups and downs that they now understand: unless such events materially affect corporate earnings—the true drivers of the markets—they are unlikely to significantly impact forward profits. The key factor here is the ability of companies to adapt to changing political conditions. Firms with operational flexibility and diversified business models are better shielded from the negative impact of political developments. They can redirect operations, identify new markets, and adjust strategies to new realities.
During Asian trading, technology stocks emerged among the top performers: shares of China's ZTE Corp. surged by 10% in Hong Kong, rebounding after a sell-off earlier this week. Shares of South Korean chipmaker SK Hynix Inc. jumped by 6.9%, helping lift the Kospi index by 2.1%.
Since the start of the week, US markets have seen a noticeable drop in activity following statements from President Donald Trump that the US is in a state of trade war with China, and Treasury Secretary Scott Bessent's proposal for a more prolonged truce.
Yesterday, Bessent hinted at the possibility of extending the suspension of import tariffs on Chinese goods for more than three months if China agrees to abandon its plan to tighten export controls on rare earth elements.
As for the technical picture of the S&P 500, the main task for buyers today will be to break through the nearest resistance level of $6,697. This would support further upside and open the way for a move to the next level at $6,711. No less of a priority for bulls will be maintaining control over $6,727, which would further strengthen buyer positioning. In the event of a decline amid weakening risk appetite, buyers must assert themselves in the $6,682 area. A break below this level would quickly push the instrument back to $6,672 and open the way to $6,660.
