Global equity markets showed little movement on Wednesday as strong earnings from chip equipment manufacturer ASML helped offset investor concerns stemming from renewed tensions in the Middle East and surging oil prices.

Europe’s STOXX 600 index hovered near unchanged by mid-afternoon trading, following a rally the previous day driven by softer-than-expected U.S. inflation data. This easing of inflation worries had reduced expectations for aggressive interest rate hikes, leading to lower bond yields and a weaker dollar. In contrast, technology-heavy markets in the United States and Asia outperformed, buoyed by optimism in the artificial intelligence (AI) sector.

ASML, the world’s largest supplier of semiconductor manufacturing tools, reported better-than-expected quarterly results and raised its 2026 revenue forecasts. The company attributed this to strong demand tied to AI-related chip production and announced plans to expand manufacturing capacity. Shares of ASML advanced as much as 8 percent on the Amsterdam exchange, lifting other AI-related stocks, which had recently faced volatility over concerns that lofty valuations and expectations for AI spending may have exceeded underlying fundamentals. By late trading, ASML’s shares were approximately 4 percent higher.

Asian markets also benefited from the positive developments. South Korea’s KOSPI index climbed more than 6 percent, with memory chip producer SK Hynix surging 8.8 percent in Seoul. Japan’s Nikkei advanced 1.5 percent.

U.S. economic data released on Tuesday showed the consumer price index (CPI) fell 0.4 percent in June, marking the first monthly decline since the initial phases of the COVID-19 pandemic. Core inflation remained flat for the month. Following the report, U.S. Treasury yields and the dollar declined, while the euro held steady above $1.14. Two-year Treasury yields ticked up slightly by 2.4 basis points to 4.21 percent but stayed well below a 17-month peak reached the previous day.

Market analysts at JP Morgan described the inflation report as favorable to investors, suggesting it could reduce the likelihood of a Federal Reserve rate hike in July and ease concerns about tightening in September, thus paving the way for broader market gains. However, Federal Reserve Chair Kevin Warsh tempered enthusiasm by emphasizing during a congressional hearing that a single positive inflation reading does not constitute a victory over inflation. Investors are awaiting further guidance from his testimony later on Wednesday, alongside U.S. producer price index data and the Fed’s Beige Book report.

Meanwhile, the corporate earnings season continued to bolster risk appetite. Morgan Stanley reported a rise in second-quarter profit fueled by robust mergers and acquisitions activity, pushing its shares up 2.8 percent in premarket trading. Asset management firm BlackRock also posted higher quarterly profits as a stock market rally increased client assets, while healthcare giant Johnson & Johnson exceeded expectations on sales and earnings.

In Europe, Germany’s two-year bond yields inched up by 1 basis point to 2.75 percent but remained below recent highs. The Bank of Canada was set to announce its policy decision later Wednesday, with no change in the benchmark interest rate widely anticipated. The Canadian dollar traded steadily above 1.40 against the U.S. dollar.

Energy markets extended gains amid escalating Middle East tensions. Oil prices rose as former President Donald Trump reinstated a naval blockade on Iranian ports, and Iran’s Islamic Revolutionary Guard Corps threatened to close key oil export routes utilized by the U.S. and its allies. Brent crude futures increased 0.7 percent, reaching $85.30 per barrel.

In China, second-quarter economic growth slowed sharply to 4.3 percent year-on-year, falling short of analyst forecasts. The deceleration was attributed mainly to weakened domestic demand despite stronger production and export figures. Still, the rebound in June retail sales, relatively robust nominal GDP figures, and expectations for targeted government stimulus provided some support to investors. Economists noted that while broad stimulus measures appeared unlikely, authorities might focus assistance on the technology sector, which continues to perform better than the wider economy.

The Chinese yuan traded near a one-month high at 6.771 to the dollar. Meanwhile, spot gold prices fell 0.6 percent to $4,029.30 per ounce, pulling back from a sharp rally the previous day as rising oil prices rekindled inflation concerns and uncertainty over U.S. monetary policy.