All articles tagged with #equities
SK Hynix’s US Nasdaq listing aims to raise about $28bn, with underwriters set to collect roughly $140m in fees, potentially making it one of Wall Street’s largest public-offering windfalls as demand for memory chips from AI data-centres drives the market.
Asia-Pacific shares broadly climbed in afternoon trading as investors rotated out of technology stocks, with Japan’s Nikkei and Korea’s Kospi leading gains while the Kosdaq slipped. The U.S. markets were closed for Independence Day, but the Dow hit a record as the Nasdaq lagged on semiconductor weakness; other highlights included Kuaishou’s Tencent-backed Kling AI funding, oil edging higher on Iran diplomacy, and gold rising on softer U.S. jobs data, signaling a mixed risk mood.
AI stocks faced renewed volatility as investors question whether the AI rally is peaking or just provoking a broader market rotation away from tech toward the rest of the market. Some see a bubble in tech valuations and earnings, while others view the move as a short‑term wobble driven by shifting rate expectations and a rotation into broader equities, powered by changes in oil prices and upcoming inflation and jobs data from the US and eurozone.
U.S. stocks fell after the Federal Reserve held rates steady in its first decision under new chair Kevin Warsh, but nine of 18 FOMC members signaled a rate hike by year-end, sending the Nasdaq and S&P 500 down about 1% and the Dow lower as traders price in higher rates amid inflation dynamics and energy-market tensions related to Middle East developments.
A Bloomberg feature argues that after years of shrinking public float, the U.S. stock market may soon see a surge in equity issuance—IPOs, secondary offerings and other share sales could add about $1.5 trillion to the market over the next two years, potentially reversing a long-standing tailwind. SpaceX, OpenAI, and Anthropic are highlighted as leading controllers of this AI-driven funding wave as companies look to equities rather than buybacks or private funding to finance growth.
Alphabet raised about $84.75 billion in a record equity offering—the largest ever and its first in more than two decades—with $35 billion sold publicly, $40 billion in secondary sale over time, and a $10 billion Berkshire Hathaway private placement after strong demand from more than 75 investors. The deal, along with new debt taking Alphabet’s total to about $100 billion, is aimed at funding a massive AI infrastructure push—including roughly $190 billion of AI-related capex this year—while cloud and hyperscaler spending remains a focus; Berkshire will hold about $32 billion of Alphabet stock, making it one of Berkshire’s largest public stakes. CFO Anat Ashkenazi described the move as boosting Alphabet’s financial flexibility.
Oil jumped after Iran reportedly halted talks with the U.S., pushing WTI to about $95 a barrel and Brent over $97 as heating oil and wholesale gas rose; traders warned that a closed Strait of Hormuz could tighten supply, and yields rose while equities moved mixedly, with small-cap declines and European losses offset by AI-driven gains.
U.S. stocks declined again, slipping further from their record highs as investors reassessed valuations and market momentum, with losses broad-based across the major indices.
Asia-Pacific stocks fell as investors digested higher bond yields, with the U.S. 30-year yield near 5.18%—its highest since 2007—and Japan’s long bonds at elevated levels; Nikkei, Kospi and Kosdaq declined while U.S. futures were modestly higher and Wall Street closed lower for a third straight session amid the yield rally and renewed geopolitical tensions around Iran.
A Financial Times opinion argues that this bull market has ridden a de‑equitisation backstop—shrinking public equity supply via buybacks and privatisations. Now an AI boom, led by players like OpenAI, Anthropic and SpaceX, could bring sizable public-market supply as these firms explore IPOs with valuations potentially up to $4 trillion, possibly expanding the US equity base by about 6% and weakening the de‑equitisation ‘put’ that has supported prices. Meanwhile, Big Tech’s shift toward heavy AI investment is dampening buybacks, suggesting more public issuance could emerge in coming years.
Stock-index futures climbed and major indices rose as U.S.-Iran tensions appeared to ease, with the S&P 500 up 0.6%, the Dow up 1%, and the Nasdaq up about 0.6% as Treasury yields fell.
Chip stocks that led the rally are showing weakness as traders rotate out of winners: notable decliners include Teradyne (~5.4%), Applied Materials (~5.9%), and NXPI (~2.7%), while other indices and tech names posted mixed moves (Spotify down about 12%, Enphase ~2.7% lower, etc.). The snapshot signals a cooling of the recent chip-led run and renewed market volatility as investors reprice risk across equities.
Bank of America derivatives strategists warn the U.S. stock market is edging toward bubble-like conditions, with Nasdaq-100 realized volatility at dot-com-era highs and froth building in pockets such as semiconductors; while the overall market isn’t yet in a bubble, other assets like the Kospi and the Bloomberg Commodity Index show extreme bubble-like dynamics. They suggest momentum plays via QQQ call spreads and hedges like VIX call spreads to navigate the risk amid a momentum-driven rally in megacap tech.
Asia-Pacific stocks opened mixed as traders weighed fragile hopes for a Middle East ceasefire against rising U.S.–Iran tensions after Trump warned of escalation; major indices showed gains in Japan and Hong Kong while others slipped, with oil prices moving and a notable HK IPO (Victory Giant) rallying on its listing. Despite geopolitical risk, investors remained cautiously optimistic in the near term, with U.S. stock futures modestly higher.
Snowflake (SNOW) fell Thursday as AI-disruption fears and a softer U.S. growth backdrop pressured the software space; the piece notes competition from new AI agents eroding pricing power for legacy SaaS and macro data showing GDP growth at 0.5% in Q4 2025. SNOW traded around $134.49, well below its 20- and 100-day moving averages, with the RSI near oversold, indicating ongoing bearish momentum.