World shares rally after Dow hits a record, as some AI shares bounce
back
[July 03, 2026] By
ELAINE KURTENBACH
BANGKOK (AP) — Shares advanced Friday in Europe and Asia after the Dow
Jones Industrial Average set another record, as some key AI related
stocks rose while others extended losses.
The future for the S&P 500 gained 0.4% while that for the Dow was up
0.2%. U.S. markets will be closed Friday for the Independence Day
holiday.
In early European trading, Germany's DAX rose 0.7% to 52,643.30 and the
CAC 40 in Paris gained 0.3% to 8,497.30. Britain's FTSE 100 picked up
0.4% to 10,689.77.
During Asian trading, South Korea's Kospi, which sank nearly 8% on
Thursday, gained 5.8% to 8,088.34. Samsung Electronics, the country's
biggest company and a major maker of computer chips, gained 8.2%, while
its smaller rival SK Hynix jumped 10.9%.
In Tokyo, the Nikkei 225 advanced 1.5% to 69,744.07. Chipmaker Tokyo
Electron rose 0.4%, while memory maker Kioxia jumped 9.2%.
Hong Kong's Hang Seng climbed 1.3% to 23,345.28 and the Shanghai
Composite index added 0.4% to 4,043.64.
Taiwan's Taiex edged 0.1% higher, while the Sensex in India jumped 0.7%.
In Australia, the S&P/ASX 200 picked up 1.4% to 8,844.40.
“Asian stocks found some footing after two bruising tech-led sessions,
with the Korean market once again showing how quickly a stretched rubber
band can snap back when everyone leans the same way,” Stephen Innes of
SPI Asset Management said in a commentary.
On Thursday, most U.S. stocks rose as the Dow snagged another record,
gaining 1.1% to 52,900.07.
Drops for computer chip companies and other winners of the
artificial-intelligence boom kept indexes mixed.
The S&P 500 finished the day virtually unchanged and edged up by less
than 0.1%, even though seven out of every 10 stocks within the index
rose. It closed at 7,483.24.
The Nasdaq composite dropped 0.8% to 25,382.67.
Stocks broadly got some help from a report showing U.S. employers added
57,000 jobs to their payrolls last month. That’s good for the economy,
but it was also short of the 100,000 jobs that economists expected and a
slowdown from May’s hiring pace.
The bright side of the weaker-than-expected result is that it could keep
pressure off inflation, which has been accelerating worldwide because of
jumps in oil prices caused by the war with Iran. And now that oil prices
are back below where they were before the war, if inflation slows in
upcoming months, the Federal Reserve may feel less need to raise
interest rates several times this year.
[to top of second column] |
Currency traders work near a screen showing the Korea Composite
Stock Price Index (KOSPI) and the foreign exchange rate between U.S.
dollar and South Korean won at the foreign exchange dealing room of
the Hana Bank headquarters in Seoul, South Korea, Friday, July 3,
2026. (AP Photo/Ahn Young-joon)
 That would be a relief for
investors, who tend to love lower interest rates because they can
give the economy a boost by making it less expensive for U.S.
households and businesses to borrow money and spend. Lower rates
also tend to push upward on prices for stocks and other investments.
Stocks of companies in the crypto industry were also strong after
the price of bitcoin rose roughly 2%, a day after dropping near its
lowest level since 2024. Robinhood Markets rose 3.8%, and Coinbase
Global gained 3.9%. Bitcoin rose 0.5% early Friday.
Selling of computer chip companies's shares has weighed on indexes.
They’ve come under pressure because of worries that their stock
prices shot too high in the frenzy around AI and that all the
spending on chips and data centers may not yield as much profit and
productivity growth as hoped.
Memory maker Micron Technology erased an early gain to drop 5.5%, a
day after plunging 10.6%. Nvidia fell 1.4%, and Lam Research sank
10.2%. They were some of the heaviest weights on the S&P 500 because
they’ve grown so huge in size amid AI mania.
Nvidia has a total value of nearly $4.7 trillion, so its stock’s
movements have more weight on the S&P 500 than any other.
In other trading early Friday, Brent crude, the international
standard, gained 0.6% to $72.26 a barrel. U.S. benchmark crude was
up 0.5% to $69.05 a barrel.
The dollar fell to 160.97 Japanese yen from 161.11 yen. The euro
rose to $1.1450 from $1.1431.
All contents © copyright 2026 Associated Press. All rights reserved
 |
