LONDON, June 9 (Reuters): Global stocks rallied on Tuesday as investors rushed to buy the latest dip in tech stocks, while oil prices fell after Israel and Iran agreed to halt attacks on one another for now.
In Europe, the STOXX 600 edged up 0.5 per cent, led by tech heavyweights ASML b and Infineon. US stock futures , rose 0.4 per cent to 0.6 per cent, as a broad range of shares gained in pre-market trading, including Nvidia, Eli Lilly tab and Goldman Sachs, all of which were up around 0.6 per cent.
Excitement about artificial intelligence was front and centre, with ChatGPT maker OpenAI confidentially filing for a US initial public offering on Monday, days before SpaceX's hotly anticipated market debut this week.
"Wall Street bankers and CEOs are beside themselves with excitement about these mega-cap listings, however, on the street there is some caution setting in," XTB research director Kathleen Brooks said.
"Although we fully expect the SpaceX IPO to be successful, the IPO itself is probably the least interesting event; what is far more interesting will be SpaceX's future earnings reports, which will need to be big to justify a valuation that is 56 times forward earnings."
The next big test for tech will be results from Oracle on Wednesday. Apple shares, meanwhile, failed to get a boost from a long-delayed AI overhaul of Siri, unveiled at the company's annual Worldwide Developers Conference.
Investors are also wary about the risks stemming from rising borrowing costs. US 10-year Treasury yields are above 4.5 per cent and, crucially, 30-year yields have spent more days north of 5 per cent this year than in any year since 2007, according to LSEG data.
In the Middle East, tensions are running high and maritime traffic through the Strait of Hormuz is well below normal levels, which is keeping oil prices above $90 a barrel.
"Inflation remains sticky enough that 46 of 68 global central banks are overshooting targets, which helps explain why bond markets are repricing for tighter policy, and why long-duration assets, private credit, and several EM currencies are struggling," analysts at Bank of America said in a note.
