Stocks Rally as Nvidia Keeps AI Juggernaut Going: Markets Wrap
(Bloomberg) — Wall Street headed for a new record high after blowout earnings from Nvidia Corp. reinforced belief that the global artificial-intelligence boom will keep powering equity markets.
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Nvidia shares rose more than 7% in New York premarket trading after its forecast-topping result and sales forecast, and is poised to add to its 90%-plus year-to-date rally. The optimism also lifted peers such as Super Micro Computer Inc. and Advanced Micro Devices Inc. Futures on the Nasdaq 100 index rose 1% while those on the S&P 500 advanced 0.6%.
“This is another important milestone in the AI journey,” said Guy Miller, chief market strategist at Zurich Insurance Company Ltd. “Top-performing companies have to deliver and Nvidia has delivered.”
The earnings offer clear evidence of the growing importance of AI, and “that’s going to keeping this juggernaut going,” Miller said.
Europe’s Stoxx 600 gauge climbed 0.4%, with tech names such as ASML Holding NV and ASM International NV leading gains.
Read more: Nvidia Clears the Way for AI Stocks to Keep Powering Higher
The Nvidia result overshadowed Wednesday’s release of Federal Reserve minutes, which confirmed officials are in no rush to cut interest rates. US Treasuries inched higher after losses on Wednesday, while Bloomberg’s dollar index retreated after touching a one-week high.
Weekly US data, due later Thursday, are expected to show only a marginal drop in the number of unemployment claims.
European bond yields inched higher after purchasing managers indexes (PMI) revealed private-sector business activity at its highest in a year in the euro area. However, investors are sticking to bets the European Central Bank will deliver its first rate cut in June.
M&A news is also flowing in, with UK investment platform Hargreaves Lansdown Plc soaring after it rebuffed a $6 billion private equity offer. Anglo American Plc shares gained as BHP Group was seen moving a step closer to a $49 billion takeover of its rival. Millicom International Cellular SA’s Stockholm-listed depositary receipts jumped as France’s Atlas Investissement confirmed it’s exploring an all-cash tender offer for the firm.
On commodity markets, oil edged higher but held near the lowest closing level in three months, while gold and copper prices slid further off recent record highs.
Key events this week:
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G-7 finance meeting, May 23-25
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US new home sales, initial jobless claims, Thursday
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Fed’s Raphael Bostic speaks, Thursday
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US durable goods, consumer sentiment, Friday
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Fed’s Christopher Waller speaks, Friday
Some of the main moves in markets:
Stocks
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The Stoxx Europe 600 rose 0.4% as of 12:27 p.m. London time
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S&P 500 futures rose 0.6%
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Nasdaq 100 futures rose 1%
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Futures on the Dow Jones Industrial Average were little changed
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The MSCI Asia Pacific Index was little changed
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The MSCI Emerging Markets Index fell 0.2%
Currencies
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The Bloomberg Dollar Spot Index fell 0.1%
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The euro rose 0.2% to $1.0843
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The Japanese yen was little changed at 156.70 per dollar
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The offshore yuan was little changed at 7.2511 per dollar
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The British pound was little changed at $1.2727
Cryptocurrencies
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Bitcoin rose 0.7% to $69,875.71
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Ether rose 3.4% to $3,875.63
Bonds
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The yield on 10-year Treasuries was little changed at 4.42%
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Germany’s 10-year yield advanced one basis point to 2.55%
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Britain’s 10-year yield declined two basis points to 4.21%
Commodities
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Brent crude rose 0.7% to $82.49 a barrel
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Spot gold fell 0.5% to $2,367.57 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Alex Nicholson, Richard Henderson and Chiranjivi Chakraborty.
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