Global markets displayed a positive outlook on Tuesday, driven by the accelerating recovery in semiconductor stocks. After the sharp sales in the technology sector last week, investors turned to chip manufacturers again, supporting both stocks and the cryptocurrency market. While Bitcoin reached its highest level in more than a month, the US’s new tariff preparations and Iran tension stood out as the main risks on the markets.
In US futures indices, Nasdaq 100 rose 1.3 percent and S&P 500 rose 0.5 percent. While the increase in an important exchange-traded fund that follows semiconductor companies reached 4 percent, technology stocks also led the rise in Asian and European markets.
Export data above expectations from South Korea and Taiwan brought purchases to leading companies in the sector such as Samsung Electronics and TSMC. Semiconductor stocks suffered their steepest weekly decline in more than a year last week. After the decline, valuations reached more attractive levels, allowing investors to turn to the sector again.
Markets remain optimistic about the long-term AI investment cycle despite high valuations and questions about whether big tech companies can continue spending on AI infrastructure. These two different expectations were at the root of the high volatility seen in chip stocks in recent sessions.
68 Thousand Dollars New Threshold in Bitcoin
The recovery in stock markets was also reflected in cryptocurrencies. Bitcoin gained 3.5 percent in the last 24 hours, rising above $66,000 and reaching its highest level in more than a month. While the rise in Ether, BNB and XRP surpassed Bitcoin, the CoinDesk DeFi Select Index, which tracks decentralized finance projects, increased by 9 percent.
The rise in Bitcoin was also influenced by the approaching resolution of disputes over the Clarity Act, which aims to determine the legal framework of the crypto market in the USA. Eleanor Terrett, the host of the Crypto in America program, reported that US President Donald Trump accepted the basic ethics provision in the bill and the relevant text was shared with Republican senators.
The ethics regulation in question is seen as one of the most important obstacles to the passage of the bill in the Senate. If the Clarity Act becomes law, it is aimed to make the distinction between digital commodities and securities more clearly and to put crypto regulations, which have been largely shaped by sanctions decisions to date, on a legal basis.
The next important level for Bitcoin that investors are watching is $68,000. According to FxPro Chief Market Analyst Alex Kuptsikevich, this zone corresponds to the 61.8 percent Fibonacci retracement level of the decline in the May-June period. Bitcoin’s persistence above this level may constitute a new signal that the return to the upward trend is strengthening.
Futures markets also show that the rise is accompanied by new capital inflows. The amount of open interest in Bitcoin futures increased from less than 750 thousand BTC to 770 thousand BTC in one day. A similar movement was seen in Ether futures, while limited change was recorded in XRP and Solana open positions.
However, volatility indicators point out that caution should be exercised regarding the permanence of the rise. The BVIV index, which tracks Bitcoin’s 30-day implied volatility, stopped declining as the price rose, indicating that some investors began taking hedging positions with options during the rise.
Charles Schwab Exceeds Expectations
Company balance sheets also supported the market outlook. Charles Schwab reported second-quarter adjusted earnings of $1.62 per share, beating market expectations of $1.55. The company’s revenue was $7.07 billion, exceeding the forecast of $6.92 billion.
While net interest income was 3.36 billion dollars, total customer assets reached 13.08 trillion dollars, an annual increase of 22 percent. While new asset inflows of $118.7 billion were recorded during the quarter, the underlying net new asset amount was announced as $120 billion. The number of new investment accounts opened also exceeded expectations with 1.39 million.
On the other hand, banking deposits remained at 249.7 billion dollars, below the market estimate of 252.22 billion dollars.
Iran Tension Keeps Oil Above $90
Despite the rise in risky assets, developments in the Middle East continue to put pressure on energy markets. As the conflicts between the USA and Iran entered the tenth day and mutual attacks continued, Brent oil rose by 1.2 percent and was traded above 90 dollars per barrel.
It was reported that Iranian officials started negotiations with representatives of mediator countries in Pakistan. Although the parties participating in the talks and the issues discussed are not yet clear, the possibility of diplomatic contact caused the markets to re-evaluate the Middle East risk.
On the other hand, the Houthis warned that ships calling at Saudi Arabian ports could be targeted at any point in the world. The statement reinforced concerns that conflict in the region could increase risks to international shipping and energy supplies.
New Tariff Preparations from the USA to 60 Economies
Another important development followed by the markets was the Trump administration’s preparations to impose new customs tariffs on approximately 60 economies. According to the Financial Times, tariffs may be announced this week. The temporary 10 percent blanket tariff imposed by the United States on global imports will expire on July 24.
It was reported that the new tariffs could be set at 10 percent or 12.5 percent, depending on countries’ practices in preventing the import of goods produced with forced labor. It is stated that countries that have established stronger control systems may face an additional tariff of 10 percent, while economies whose practices are deemed inadequate may face an additional tariff of 12.5 percent.
South Korea, China, Japan and Brazil are in the 12.5 percent group; It was suggested that Canada, Mexico, the European Union and the United Kingdom could be in the 10 percent group. It was stated that some basic products may be exempt from the application.
It is stated that the Trump administration is also conducting investigations under Article 301 of the US Trade Act on different issues such as excessive production capacity. For this reason, there is a possibility that the final tariffs to be applied to some countries will rise to higher levels.
In the UK, government bond yields fell as weak economic data reduced expectations for new interest rate hikes. While investors wait for the new policies to be announced by Prime Minister Andy Burnham, the London Stock Exchange announced that it plans to establish a new platform that will provide almost uninterrupted trading outside normal market hours.
