A robust rebound in technology shares combined with declining oil prices has brightened global market sentiment, putting the S&P 500 on track for a weekly gain and providing a positive close to a week marked by considerable turbulence.

Optimistic guidance from NVIDIA fueled further gains in chip stocks, with Nasdaq 100 futures advancing 0.7% and S&P 500 futures rising 0.4%. Asian markets followed suit, with South Korea's Kospi index surging as much as 2.7% to lead regional advances. In contrast, Europe's Stoxx 600 index, which has less exposure to AI-related stocks, slipped 0.3%.

The week witnessed a notable shift in market dynamics: the Federal Reserve's rate hike reinforced its anti-inflation credibility, concerns over crude supply disruptions in the Middle East eased, and an ongoing imbalance in semiconductor supply and demand continued to underpin earnings expectations for chipmakers. Brent crude prices declined for a third consecutive session, approaching $102 per barrel, while gold advanced to near $4,400 per ounce. The Bank of Japan raised its benchmark rate as expected on Friday, sending the dollar up 1% against the yen to 157.53. BOJ Governor Kazuo Ueda noted it was difficult to determine whether financial conditions were excessively loose.

Friday also brings additional market turbulence from "triple witching" — the simultaneous expiration of derivative contracts tied to individual stocks, index options, and futures. According to estimates from Pepperstone Group strategist Dilin Wu, options with a notional value exceeding $2 trillion expire today, and historical data indicates the S&P 500 tends to close lower on triple-witching days more often than average.

Nasdaq 100 futures rose 0.7%, while S&P 500 futures gained 0.4%.

Euro Stoxx 50 opened down 0.2%, Germany's DAX fell 0.4%, UK's FTSE 100 dipped 0.2%, and France's CAC 40 slipped 0.4%.

Japan's Nikkei 225 closed 1.4% higher at 65,018.95 points. Japan's Topix ended 0.1% lower at 4,091.14 points. South Korea's Seoul Composite Index closed 2.7% higher at 6,894.23 points.

The dollar gained 1% against the yen to 157.53. BOJ Governor Kazuo Ueda said it is difficult to judge whether financial conditions are excessively loose.

The euro advanced 0.1% to $1.1488.

The US 10-year Treasury yield was little changed at 4.94%.

Japan's 30-year government bond futures erased earlier gains, with the 20-year yield at 3.835% and the 10-year yield narrowing its decline to about 1.5 basis points.

Brent crude fell 2.0% on the day to $97.92 per barrel.

Spot gold rose 0.5% to $4,362.87 per ounce.

Bitcoin advanced 1.2% to $77,426.01.

Weekly Shift: From Turmoil to Recovery

Early in the week, multiple pressures simultaneously hit markets — Brent crude reached a four-month high, the 10-year US Treasury yield climbed to its highest level in nearly two decades, and concerns that AI technology could pose an "existential risk" weighed on chip stocks.

However, as various risk factors gradually subsided, markets staged a clear recovery through the week. The Fed's rate hike solidified its policy stance against inflation, geopolitical risk premiums in oil supply receded, and NVIDIA's upbeat business outlook reignited investor confidence in semiconductor earnings prospects. The structural supply-demand imbalance in the chip industry is unlikely to reverse in the near term, continuing to support profitability for related companies.

Split Vote Pressures Yen, Strategists Warn of Further Weakness

The non-unanimous voting outcome in this rate hike decision became a key focus for markets. Bloomberg strategist Mark Cranfield remarked, "The dollar-yen pair rose after the BOJ hiked rates by 1.25% as expected but with a split vote, which will make another hike at the October meeting more difficult."

Several strategists noted that if investors conclude the BOJ's tightening pace cannot match the Fed's, the dollar-yen could advance further toward the 160 level. Given that this 25-basis-point rate hike had largely been priced in beforehand, the yen faces even greater downside risk if subsequent policy communication is interpreted as dovish.

Earlier this month, the yen experienced a strong rebound driven by expectations of accelerated BOJ tightening, unwinding of yen carry trades, and anticipation that Japanese pension funds might increase allocations to domestic assets. However, the Fed's hawkish rate hike this week reversed those gains.

In the Japanese government bond market, 30-year bond futures erased gains following the rate announcement, the 20-year yield stood at 3.835%, the 10-year yield narrowed its decline to about 1.5 basis points, and the 2-year yield fell 2.5 basis points to 1.835%.

Asian Chip Stocks Rally, US Futures Extend Gains

Wall Street's gains the previous day set a positive tone for Asian markets — the S&P 500 and Nasdaq 100 each recorded their largest single-day advances since early August, lifting the MSCI Asia-Pacific stock index by 0.8%.

NVIDIA's optimistic outlook drove semiconductor stocks higher across the region, with SK Hynix gaining 5% on the day and Samsung Electronics also advancing. US index futures indicated Wall Street was poised to extend gains, while European equities were expected to open slightly weaker.

Gold continued its advance, trading at approximately $4,360 per ounce after gaining nearly 2% on Thursday, which largely erased losses from the preceding three sessions.

Triple Witching Adds Uncertainty, Volatility Risks Remain

Friday's market also faces additional disruption from "triple witching" — the simultaneous expiration of derivative contracts tied to individual stocks, index options, and futures.

According to Pepperstone Group strategist Dilin Wu, options with a notional value exceeding $2 trillion expire today. Historical data shows the S&P 500 closes lower on triple-witching days more often than average. She also noted that Thursday's buying may partly reflect bulls pushing key technical levels higher in advance to secure favorable positioning, adding, "Whether the rally can sustain beyond expiration day is the key question to watch today."

Nick Twidale, chief market analyst at AT Global Markets, also remarked, "With central bank policy still driving markets and geopolitical risks remaining elevated, there should be ample room for volatility in the remainder of the week."