US futures climbed Monday and Asian markets rose, continuing a tech driven rally into the holiday shortened trading week, even as European indexes faltered and gold reached record highs.
Investors appeared drawn to AI related stocks and precious metals amid ongoing volatility in global commodities and bond markets.
Futures for the US’s tech heavy Nasdaq rose 0.4 percent in premarket trading, while contracts for the S&P 500 and Dow Jones Industrial Average gained 0.3 percent and 0.1 percent, respectively.
Asian markets followed suit, with key indices in Tokyo, Hong Kong, and Seoul posting modest gains. European stocks, by contrast, fell, as traders weighed mixed corporate earnings reports and lingering concerns over inflation in the region.
“The momentum in technology and AI-related sectors is clearly influencing market sentiment globally,” said Sarah Liu, chief strategist at Harbor Investments in New York.
“Investors are positioning themselves for growth opportunities, but caution remains in Europe where macroeconomic indicators are more mixed.”
The current rally in US futures and Asian markets comes after a strong performance on Wall Street last week, when technology stocks propelled the Nasdaq near record levels.
Semiconductor firms in both Asia and Europe have benefited from renewed investor interest in AI applications, which has spurred a rebound in equity valuations.
Gold, meanwhile, surged to a new high, reaching $2,150 an ounce as investors sought safe haven assets amid uncertainty in global markets.
Miners and related commodity companies also saw their shares rise. Government bond yields followed Japanese sovereign debt higher, reflecting shifts in investor expectations regarding interest rates and inflation.
“The spike in gold and other precious metals reflects a traditional hedging strategy during periods of heightened market volatility,” said David Moreno, a senior analyst at Global Commodities Research in London.
“With stocks and bonds showing mixed signals, traders often turn to metals for stability.” Market experts note that the ongoing interest in AI related stocks is a major driver behind US futures and Asian market gains.
Analysts point out that technological innovation continues to attract both institutional and retail investors despite concerns about valuation levels.
“Artificial intelligence has become a global investment theme, and companies leading in this space are drawing significant attention,” said Priya Nair, head of equity research at Sunrise Capital in Mumbai.
“This is reflected not only in US futures but also in Asian markets where tech and semiconductor sectors are outperforming.”
European markets, however, faced pressure from disappointing corporate earnings in key sectors and persistent inflationary pressures in several countries.
The pan European Stoxx 600 index fell 0.2 percent, with energy and consumer goods stocks accounting for most of the losses.
On a regional basis, Tokyo’s Nikkei 225 gained 0.5 percent, Hong Kong’s Hang Seng added 0.3 percent, and South Korea’s Kospi rose 0.4 percent.
In contrast, London’s FTSE 100 fell 0.1 percent, Germany’s DAX dropped 0.3 percent, and France’s CAC 40 lost 0.2 percent.
Gold prices set a new record high as investors sought safe haven assets, climbing 1.2 percent in early trading. Silver and platinum also saw gains, with global miners reporting increased demand for precious metals.
US bond yields rose modestly alongside Japanese government debt, reflecting investor caution and a preference for low risk instruments.
Traders on the floor of the Tokyo Stock Exchange expressed cautious optimism about the market rebound.
“Tech stocks are driving momentum, but we are aware of potential volatility around the holidays,” said Kenji Takahashi, a senior broker at Mitsui Securities.
In New York, portfolio manager Laura Greene noted, “Investors are balancing enthusiasm for AI growth with uncertainty over interest rate policies and global economic conditions.”
Analysts expect US stock and bond markets to remain closed Wednesday afternoon and Thursday for the Christmas holiday, which may limit trading volume and contribute to short term volatility.
Looking ahead, market watchers will closely monitor corporate earnings, central bank signals, and developments in AI related industries to gauge the sustainability of current gains.
“While optimism is driving US futures and Asian markets, European investors are more cautious, and this divergence may continue in the near term,” said Moreno. “Gold and other safe haven assets are likely to remain attractive if uncertainty persists.”
US futures and Asian markets rose Monday amid a tech led rally, while European indexes declined. Gold reached a new high, reflecting investor interest in safe haven assets.
Analysts highlight that AI related growth continues to drive equity markets in the US and Asia, whereas Europe faces mixed economic signals.
Market activity is expected to remain subdued during the holiday shortened week, with investors closely monitoring corporate earnings and macroeconomic indicators for future guidance.
