Global equities rose on Tuesday, led by US technology and semiconductor stocks. The S&P 500 gained 0.8% and the small-cap Russell 2000 rose 1.8%, while Intel, Qualcomm and Micron climbed 11\u201313%.<\/p>\n
Asian markets also advanced, with Korea up 6% and Shenzhen up 2.5% after a holiday. Korea was up 70% year to date and 180% over the last 12 months.<\/p>\n
European shares lagged the US over the past month, with the Stoxx 600 up 2% versus a 10% rise in the S&P 500. The difference was linked to sector make-up rather than energy prices alone.<\/p>\n
Cyclical sectors and smaller companies also moved higher after US ceasefire comments. Regional banks, materials and industrials rose 1\u20132%, and the Stoxx 600 added 0.7%.<\/p>\n
The article was produced using an AI tool and checked by an editor.<\/p>\n
The continued surge in technology, especially semiconductors, suggests maintaining a bullish stance. We should consider long calls or bull call spreads on tech-heavy indices like the Nasdaq 100 (QQQ) or semiconductor ETFs (SOXX). The SOX index, which tracks these companies, is up over 15% in the last month alone, showing powerful momentum that is likely to persist in the near term.<\/p>\n
The rebound in general cyclicals and small caps is a signal that the rally is broadening. This follows last week’s ISM manufacturing report, which surprised to the upside at 51.2, suggesting a resilient industrial sector. We should look at call options on the Russell 2000 (IWM) or industrial ETFs (XLI) to capture this potential catch-up trade.<\/p>\n
There is a clear divergence between US and European markets that presents a pairs trade opportunity. The underperformance of the Stoxx 600 is due to its lack of high-growth tech, a structural issue that will not change quickly. Year-to-date, the Nasdaq 100 has outperformed the Stoxx 600 by nearly 12 percentage points, a gap we expect to widen.<\/p>\n
We saw a similar pattern in late 2024, where tech led a sharp rally before a brief consolidation. The “jaw dropping speed” of this move means implied volatility is high, with the VIX index holding above 18. This makes selling out-of-the-money put spreads on strong indices an attractive way to collect premium while expressing a bullish view.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Global equities rose, led by US tech and semiconductors; Asia advanced, Europe lagged, cyclicals gained too.<\/p>\n","protected":false},"author":103,"featured_media":16984,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-49598","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/49598","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/103"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=49598"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/49598\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16984"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=49598"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=49598"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=49598"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}