Stocks Rebound on Fed Optimism and Strong Earnings

European and US stocks rebounded in trading yesterday as Federal Reserve governor Christopher Waller expressed optimism about inflation progress. The Iseq index added over 1% in Dublin, with Cairn Homes leading gains after reporting a gross profit of €96.9 million in interim results, up 54% year on year.

The European Stoxx 50 and Stoxx 600 indices also rose, while the pan-European blue-chip index edged up by 0.5%. Meanwhile, chip stocks were mixed, with Soitec advancing over 9% after lifting its revenue guidance for the second quarter of 2027, but ASML and Infineon dipping by 1.5% and 0.8% respectively.

In the US, Wall Street shares advanced, and bond yields fell after governor Christopher Waller said he would be willing to support holding rates steady if price pressures continue to ease. The S&P 500 rose over 1%, while the tech-heavy Nasdaq Composite added 1.4% and the Dow Jones Industrial Average jumped by 1.2%.