Daily Market Briefing

Market Recap

US equity markets delivered a chip-fuelled rally on Thursday, with the Nasdaq 100 jumping 1.62% to 29,727 and the S&P 500 gaining 0.81% to 7,544. The Dow Jones added a more modest 0.27% to close at 52,487. Semiconductor stocks led the charge — Lam Research surged 6.01%, Palo Alto Networks climbed 5.53%, and Marvell Technology advanced 4.99% — as traders positioned ahead of SK Hynix's mega-listing. The FTSE 100 closed down 0.16% at 10,472 on Thursday, weighed by energy names as oil prices retreated. Falling crude helped sentiment in the US, with WTI dropping 1.74% to $72.24 and Brent sliding 1.96% to $76.49.

Key Movers & Themes

SK Hynix Nasdaq Debut: The South Korean memory chip giant raised $26.5bn in what will be the largest ever US debut by a foreign firm, with shares set to start trading on the Nasdaq this morning. The listing serves as a major test of whether the company can shed its longstanding "Korea Discount" and attract premium valuations from US investors. The move comes as global chip demand remains robust, particularly for AI-related memory products.

Meta Rebounds on AI Advances: Meta rallied on Thursday following the launch of a new AI model and reports of a significant custom-chip milestone. The stock climbed 4.70% to $631.48 as investors grew more confident that the company's heavy AI spending will deliver returns. The advance helped lift broader tech sentiment, though concerns linger about whether AI investments will pay off quickly enough to avoid tipping the economy into recession, according to Apollo.

Bank of England Rate Warning: The BoE's chief economist said interest rates may need to rise this year despite slower growth, citing persistent inflationary pressures. The hawkish signal comes as UK traders digest mixed economic data and could weigh on rate-sensitive sectors today. The pound strengthened 0.56% to $1.3428 on the comments.

Chart of the Day

Palo Alto Networks (PANW) is carving out a bullish setup after Thursday's 5.53% surge to $338.30. The stock broke above its 20-day EMA ($312.10) and is now trading well above all major moving averages. RSI sits at 64.0 — strong but not overbought — while MACD shows a bullish crossover above the zero line. The classic pivot resistance at $345.00 is the next key level to watch. A clean break above that opens the door to $351.70 (R2), while support sits at the pivot point of $331.70. The Camarilla R3 at $343.80 could act as intraday resistance if momentum stalls.

Economic Calendar — What to Watch Today

Data not yet available for today's economic events. Key focus will be on any US retail sales or consumer sentiment data, plus ongoing geopolitical developments as the US continues technical talks with Iran despite Trump declaring the ceasefire "over" earlier this week.

Technical Levels to Watch

The breadth picture shows 7 bullish stocks trading above all EMAs versus 3 bearish and 10 mixed. No stocks are overbought (RSI >70) or oversold (RSI <30), suggesting room for further moves in either direction. MACD signals show 8 bullish crossovers against 12 bearish, reflecting a market in transition. Watch Costco's pivot at 918.6 — the stock closed below it at 913.0 with weak RSI (34.8), making it vulnerable to further downside toward S1 at 902.1.

Commodities & Currencies

Silver stole the show with a 3.90% surge to $60.43, outperforming gold which dipped 0.24% to $4,120.80. Natural gas tumbled 7.40% to $3.000 as warmer weather forecasts reduced demand expectations. Oil prices fell on easing supply concerns, with Brent down 1.96% and WTI off 1.74%, providing a tailwind for equity markets. Sterling gained 0.56% after the BoE economist's hawkish comments, while Bitcoin rallied 2.93% to $64,078.78 on renewed crypto optimism.

Trading Outlook

Cautiously bullish into the London open, with tech strength from the US likely to support sentiment. The FTSE 100's 10,400 level is now doing the heavy lifting as support — a break below would target the 5-day low at 10,397.50. Watch for any follow-through on the BoE rate warning, which could pressure UK equities if gilt yields spike. The key catalyst that could flip sentiment: any escalation in US-Iran tensions or a disappointing SK Hynix debut. Stay alert around the 8:00am open — if the FTSE gaps down through 10,400, wait for a retest before entering longs.