Stock markets across Europe and Asia moved higher on Friday after the Dow Jones Industrial Average closed at another record high, helped by gains in several major artificial intelligence (AI)-related companies, although some chipmakers continued to face selling pressure.
Futures for the S&P 500 rose 0.4%, while Dow futures gained 0.2%. US financial markets remained closed on Friday for the Independence Day holiday.
In early European trading, Germany's DAX climbed 0.7% to 52,643.30, France's CAC 40 added 0.3% to 8,497.30, and Britain's FTSE 100 advanced 0.4% to 10,689.77.
Asian markets also posted solid gains. South Korea's Kospi rebounded 5.8% to 8,088.34 after falling nearly 8% a day earlier. Samsung Electronics rose 8.2%, while chipmaker SK Hynix jumped 10.9%.
Japan's Nikkei 225 gained 1.5% to 69,744.07. Chip equipment maker Tokyo Electron edged up 0.4%, while memory chip producer Kioxia surged 9.2%.
Hong Kong's Hang Seng index rose 1.3% to 23,345.28, while China's Shanghai Composite added 0.4% to 4,043.64. Taiwan's Taiex increased 0.1%, India's Sensex gained 0.7%, and Australia's S&P/ASX 200 advanced 1.4% to 8,844.40.
Stephen Innes of SPI Asset Management said Asian markets regained some stability after two difficult sessions led by losses in technology stocks, with South Korea staging a strong rebound.
On Thursday, the Dow Jones Industrial Average rose 1.1% to a record close of 52,900.07.
The broader S&P 500 ended almost unchanged, adding less than 0.1% to close at 7,483.24, even though about 70% of its listed companies gained. The tech-heavy Nasdaq Composite fell 0.8% to 25,382.67, weighed down by losses in major chipmakers.
Investor sentiment was supported by a US jobs report showing employers added 57,000 jobs in June, below economists' forecast of 100,000 and slower than May's hiring pace.
The weaker-than-expected jobs data eased concerns that inflation could remain high. Oil prices, which had surged during the Iran conflict, have now fallen below pre-war levels, raising hopes that inflation may cool in the coming months.
If inflation continues to slow, the US Federal Reserve may face less pressure to raise interest rates repeatedly this year. Lower interest rates generally support economic growth by reducing borrowing costs for households and businesses and often boost stock prices.
Cryptocurrency-related shares also advanced as bitcoin recovered after recent losses. Robinhood Markets gained 3.8% and Coinbase Global rose 3.9%. Bitcoin was up 0.5% early Friday after climbing about 2% the previous day.
Despite the broader market gains, several leading AI-related chip companies remained under pressure as investors questioned whether their rapid share price increases and heavy spending on AI infrastructure would generate the expected profits.
Micron Technology reversed early gains to end down 5.5%, following a 10.6% drop the previous day. Nvidia fell 1.4%, while Lam Research slid 10.2%, making them among the biggest drags on the S&P 500. Nvidia remains the largest company in the index with a market value of nearly $4.7 trillion.
In commodity trading, Brent crude oil rose 0.6% to $72.26 per barrel, while US benchmark crude gained 0.5% to $69.05 per barrel.
In currency markets, the US dollar slipped to 160.97 Japanese yen from 161.11 yen, while the euro strengthened to $1.1450 from $1.1431.