MSCI indices reach all-time highs as software stocks surge 16% in a week, offsetting weakness in defensive and Asian equities.
Global equities opened August at fresh record highs across multiple MSCI indices, driven by a sharp sector rotation. Software stocks led gains, rebounding 16% over the past week, while lower oil prices bolstered sentiment amid easing tensions in the Strait of Hormuz.
Defensive sectors underperformed despite broad market strength, continuing a three-session cyclical rotation. Asian markets lagged, weighed down by skepticism around regional tech and semiconductor stocks, even as US and European futures edged higher.
The divergence reflects shifting investor sentiment, with tech recovery offsetting concerns over Asia’s semiconductor outlook.