Deutsche Bank strategists note that strong Microsoft earnings triggered a global technology rebound, lifting the KOSPI, Nasdaq and semiconductor stocks. The rally helped the S&P 500 record its best day in seven weeks despite weak market breadth, while Amazon’s strong cloud growth offset Apple’s disappointing outlook.

Korean equities ride tech wave

"The other big overnight story is the +16.4% rally in the KOSPI after the tech rebound in the last 24 hours with the Nikkei also up over 4%. This follows Microsoft (+15.51%) having its best day since 2008 following its results the previous evening. This also marked the largest ever single-day increase in any company’s market cap (+$450bn). For perspective, that increase is larger than the value of any company in Europe except ASML."

"The positive read across from Microsoft’s results for cloud and AI demand helped the NASDAQ to a +2.78% gain. And the Philly semiconductor index (+8.19%) rebounded after its recent woes, its biggest advance since April last year. In turn, that helped the S&P 500 (+1.66%) to its best day in seven weeks, even as most of the index’s constituents declined. The exception from the positive tech mood was Meta (-7.95%) which slumped after its own results."

"After the US close, we then got mixed results from Amazon and Apple. Amazon’s shares surged by nearly +10% in extended trading following a +3.90% gain in the regular session as revenue growth in its web services division accelerated to its fastest since 2021 (+37% yoy vs +31.3% est.)."

"The company also raised its 2026 capex projection from $200bn to $220bn. However, Apple’s shares were down about -6% after-hours as it issued a disappointing sales growth forecast for the current quarter (+9% to +11% vs +12% est.). Net net S&P (+0.49%) and Nasdaq (+1.07%) futures are comfortably higher on the overall global tech rebound. "

"In terms of European equities, the Stoxx 600 (+0.77%), DAX (+0.60%), CAC (+0.92%) and FTSEMIB (+1.29%) all posted decent advances, though the FTSE 100 (-0.10%) underperformed."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)