Intel Jumps As Dollar Eases From Two-Month High

Intel led the US stock moves, closing sharply higher after reports of a large Google chip order, while the Nasdaq and S&P 500 rose after Friday’s sell-off. The FTSE 100 finished nearly flat, with Tate & Lyle surging on a takeover deal and HSBC rising. The dollar eased from a two-month high, sterling recovered to $1.3360, gold firmed and oil fell after Iran and Israel halted attacks.

Equities

The FTSE 100 finished virtually unchanged on Monday, closing at 10,373.2 after recovering from earlier losses of as much as 0.5%. Sentiment improved as oil prices eased from their intraday highs after Iran and Israel said they would halt attacks on each other following an appeal from US President Donald Trump. The FTSE 250 closed 0.2% lower.

HSBC shares rose around 1% on Monday, ending a three-session losing streak and helping lift the banking sector, which gained 0.4%. Tate & Lyle surged 14.8% after agreeing to a £2.7 billion takeover by US ingredients group Ingredion. In contrast, packaging and automation specialist Mpac Group fell 20% after warning that full-year profit is likely to come in substantially below current market expectations.

Homebuilders were under pressure, with the sector falling 2.8%, while utilities declined 1%. Bank of England policymaker Alan Taylor said current interest rates remained restrictive and that he did not believe higher rates were necessary to address inflation pressures linked to the conflict in the Middle East.

In the United States, stocks closed mostly higher on Monday following Friday’s sharp sell-off. The S&P 500 gained 0.3% to 7,405.73, while the Nasdaq Composite rose 0.9% to 25,929.66. The Dow Jones Industrial Average slipped 0.2% to 50,786.01.

Technology shares led the rebound. The Philadelphia Semiconductor Index jumped 5.6%, recovering part of Friday’s steep losses. Intel shares closed 11.2% higher after a report said Google had ordered more than three million tensor processing units to be manufactured in 2028. Marvell Technology climbed 9.6% after confirmation that it will join the S&P 500 later this month.

Apple ended Monday 1.9% lower despite unveiling a range of artificial intelligence upgrades, including a new AI-powered version of Siri, at its Worldwide Developers Conference in California. Broadcom rose 2.8% after coming under pressure last week following results that raised concerns about growth expectations in the semiconductor sector.

Healthcare stocks also attracted attention. Eli Lilly gained 1.6% after trial data showed its obesity treatment retatrutide reduced sleep apnoea severity while also supporting weight loss and easing knee pain.

Forex & Commodities

The US dollar eased early on Tuesday after reaching a two-month high late on Monday, as the halt in direct attacks between Iran and Israel reduced some demand for the greenback. The dollar index was down at 99.90 after touching 100.2 in the previous session.

Sterling strengthened early on Tuesday to $1.336, recovering from a three-week low. The euro also moved higher to $1.155 after hitting a two-month low on Monday, while the Australian dollar rose to $0.7056 and the New Zealand dollar climbed to $0.5833. The Japanese yen remained under pressure, weakening as far as 160.3 against the dollar, a level closely watched for possible official intervention.

Gold firmed early on Tuesday as softer oil prices eased some inflation concerns. Spot gold rose to $4,346 an ounce after touching its lowest level in more than two months on Monday. Silver rose to $68.45, platinum climbed to $1,760 and palladium advanced to $1,223.

Oil prices fell early on Tuesday, giving back most of Monday’s gains after Iran and Israel said they had halted attacks on each other. Brent crude was down at $93.11 a barrel, while US West Texas Intermediate fell to $90.00. Prices had climbed as much as 5% on Monday before paring gains as military operations paused.

Central banks remained in focus. Markets fully priced in a European Central Bank rate increase to 2.25% at Thursday’s meeting, with further rises expected by year-end. In the US, traders priced in a more than 70% chance of a Federal Reserve rate rise by December after strong jobs data, while May inflation figures due on Wednesday are expected to shape the next move.