Tech stocks advance as crude oil drops below 100 dollars and dollar holds firm

Tech rally lifts global equities

Technology shares drove equity gains across international markets on Tuesday and Wednesday, supported by demand for artificial intelligence software and semiconductor hardware. The Nasdaq Composite touched an intraday peak of 27,212.68 on Tuesday, moving past its previous high of 27,190.21 set on 1 June. Chipmaker AMD crossed a 1 trillion dollar valuation on Monday after a share gain of nearly 10%, while Meta advanced more than 11% following consumer downloads of its Muse assistant. In Asia on Wednesday, South Korea's benchmark rose 1.2% behind gains of more than 2% in Samsung and SK Hynix, while the MSCI Asia-Pacific index outside Japan climbed 0.7% for its sixth consecutive daily advance.

Pepperstone head of research Chris Weston described the sectoral momentum in Asian trading.

Memory stocks have taken the leadership baton, backed by another strong session for semi's, which have recorded a sixth consecutive day of gains.

Oil retreats below 100 dollars on diplomacy and supply

Crude oil prices fell below 100 dollars per barrel for the first time since 8 September, recording a five-session decline. Brent crude futures stood at 99.18 dollars per barrel on Wednesday morning, while West Texas Intermediate traded at 90.17 dollars per barrel. Prices eased after Saudi Arabia restarted operations on its East-West Pipeline to the Red Sea port of Yanbu, allowing crude shipments to bypass the Persian Gulf. In addition, reports indicated that Iran had offered to reopen the Strait of Hormuz within seven days if the United States reduces military pressure in the region.

KCM Trade chief analyst Tim Waterer noted changing sentiment among energy traders following the developments.

The market is currently feeling more constructive about the global oil supply picture than it was a few weeks ago.

Central bank policy and currency movements

The US dollar index held near two-month highs at 100.56 on Wednesday as currency traders evaluated interest rate trajectories across central banks. The euro traded at 1.1446 dollars, close to its lowest level since late July, while sterling stood at 1.3337 dollars and the Japanese yen was at 157.55 per dollar. The Bank of Japan raised its policy rate to a 31-year high last week, though two dissenting votes on its nine-member board created market debate over the pace of future increases. In Europe, the yield spread between 10-year French and German government bonds widened beyond 100 basis points for the first time in over a decade due to French budget negotiations.

Intouch Capital Markets head of Asia FX Kieran Williams discussed the current market expectations surrounding US interest rates.

The dollar's support from rates looks durable, but futures already price more tightening than the Fed's own projections, so the dollar now needs the data to confirm it.

Diplomatic overtures at the United Nations

Diplomats gathered in New York for the United Nations General Assembly as leaders addressed the nearly seven-month conflict in the Middle East. US President Donald Trump stated that envoys Steve Witkoff and Jared Kushner held discussions with Iranian mediators, while warning of severe military action if negotiations fail. Iranian President Masoud Pezeshkian is scheduled to address the assembly on Wednesday, with market participants watching for potential direct discussions between the two administrations. In energy markets, India recorded a 16.5% drop in Russian crude imports in August to 2.1 million barrels per day as domestic refiners prepared for potential trade tariffs, increasing purchases from Saudi Arabia and Iraq instead.

US President Donald Trump commented on the status of the discussions on Tuesday.

I think there's a lot of momentum for them to make a deal.