Global stock markets surged back strongly, buoyed by renewed confidence in the artificial intelligence sector following exceptional results from Micron Technology, which confirmed continued robust demand for memory chips and data centre infrastructure. The gains were reflected across US, European and Asian indices, restoring momentum to technology and semiconductor stocks worldwide.
The gains came as oil prices fell back to pre-Middle East war levels, while US inflation data eased investor concerns about an accelerating pace of monetary tightening, despite expectations that interest rates will remain elevated for longer.
Wall Street
In the United States, the Dow Jones Industrial Average rose by approximately 160 points, or 0.31%, to reach 52,009 points, setting a new record high supported by bank, industrial and healthcare stocks.
The S&P 500 also climbed 0.63% to 7,405 points, while the Nasdaq Composite rose 0.97% to 25,725 points, driven by chip and AI stocks.
Despite the broad gains, the market saw a clear split, with shares in tech giants such as Apple and Microsoft falling after announcements of price increases on certain products due to rising costs of electronic components and chips.
Apple's share fell by around 5% after the company announced price increases on MacBook and iPad devices, while Microsoft's stock dropped approximately 4% following price rises on Xbox consoles of up to $150 for some models.
By contrast, Micron's share surged more than 17% to record levels, while Qualcomm rose around 6% after raising its data centre revenue outlook to $15 billion by 2029.
Europe hits all-time highs
In Europe, the Stoxx 600 index closed up 0.8% at a new record high of 640.21 points, having touched an all-time intraday high of 642.09 points during the session.
The gains were driven by a 1.5% rise in healthcare stocks, alongside a recovery in the technology sector, which climbed 0.8% on the back of strong gains in chip companies.
Germany's Bayer posted the index's biggest gain, surging 18.7% following a favourable court ruling in the United States.
AI-linked technology stocks also advanced, with Infineon rising 3.1%, STMicroelectronics up 5.1%, ASML gaining 2.6%, and Siemens Energy up 2.3%.
Investors believe that European companies linked to the semiconductor supply chain have become among the primary beneficiaries of the global AI boom.
Japan records strongest gains
In Asia, the strongest performance came from the Japanese market, where the Nikkei 225 jumped 4.6% to close at a new record high of 72,366 points.
The broader Topix index also rose 1.33% to 4,016 points.
The gains were driven by rises in stocks linked to the chip manufacturing and AI data centre sectors, while energy and shipping stocks came under pressure as oil prices fell.
South Korea posts strong jumps
South Korean chip companies continued to benefit from the wave of global optimism, with SK Hynix rising 13% and Samsung Electronics gaining 5.3%.
SK Hynix's plans to raise approximately $29.4 billion through a share offering in the United States also bolstered investor confidence in the sector.
Micron
Micron's results reshaped the investment landscape across global markets after the company announced purchase commitments worth $22 billion from customers and revenue forecasts that significantly exceeded analyst estimates, with the supply-demand gap in the memory market expected to persist beyond 2027.
The company's market capitalisation jumped to approximately $1.39 trillion, briefly surpassing the market capitalisations of both Meta and Tesla.
Analysts believe the memory chip sector has entered a new phase of sustainable growth, driven by rising demand for AI applications, cloud computing and data centres.
Oil and the dollar
A decline in Brent crude to below $73 per barrel helped boost investor risk appetite, having erased all the gains it had made during the recent period of geopolitical tensions.
The dollar also stabilised near its highest levels in several months, while US Treasury yields edged slightly lower following the release of inflation data.
Inflation under the microscope
Data from the US Personal Consumption Expenditures index — the Federal Reserve's preferred inflation measure — showed annual inflation rising to 4.1% in May, its highest level since April 2023, though it came in line with market expectations.
Core inflation registered 0.3% month-on-month and 3.4% year-on-year.
Despite persistently elevated inflationary pressures, investors viewed the data as less alarming than anticipated, helping to sustain the equity rally.
Chip markets lead the way
Recent market moves suggest that the semiconductor sector has returned to the forefront of global markets, with growing investor conviction that the AI boom has yet to reach its peak.
From New York to Frankfurt, Tokyo and Seoul, chip and memory companies posted the strongest gains, at a time when financial results and new orders confirm that global spending on AI infrastructure continues to accelerate, making the sector the primary driver of global markets in the second half of 2026.