(Bloomberg) — Global stocks rallied and Wall Street looked set 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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Europe’s Stoxx 600 climbed 0.2%, with prominent tech names including ASML Holding NV, ASM International NV and BE Semiconductor Industries NV leading gains. Futures on the S&P 500 rose 0.5%, while those on the Nasdaq 100 added 0.8%, bolstered by Nvidia’s forecast-topping result and sales forecast. In New York premarket trading, Nvidia jumped about 7%, also lifting peers such as Super Micro Computer Inc. and Advanced Micro Devices Inc.
“For anyone in doubt that growth in AI and the supply chain is fading, Nvidia’s results, tone, and guidance completely disprove that thesis,” said Robert Alster, chief investment officer at Close Brothers Asset Management.
A Bloomberg gauge of Asian chipmakers jumped as much as 1.9% to touch a three-year high, boosted also by South Korea’s $19 billion package of incentives to bolster its semiconductor industry.
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 showed officials are in no rush to cut interest rates. US Treasuries slid further after losing ground on Wednesday while Bloomberg’s dollar index traded near a one-week high.
Bond yields rose across Europe rose too as purchasing managers indexes (PMI) showed private-sector business activity at its highest in a year, suggesting an economic rebound is taking hold.
The pound firmed and British 10-year gilt yields climbed further, following Wednesday’s above-forecast inflation reading that’s seen traders push back the timing for the Bank of England’s first interest rate cut. There was minimal reaction to Prime Minister Rishi Sunak’s late-Wednesday announcement of a July 4 general election.
On commodity markets, gold and copper prices slid further off recent record highs, while crude futures also slipped, on track for a fourth daily loss.
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 0.1% as of 9:56 a.m. London time
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S&P 500 futures rose 0.4%
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Nasdaq 100 futures rose 0.8%
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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 was little changed
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The euro rose 0.1% to $1.0839
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The Japanese yen was little changed at 156.77 per dollar
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The offshore yuan was little changed at 7.2567 per dollar
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The British pound was little changed at $1.2722
Cryptocurrencies
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Bitcoin rose 0.2% to $69,583.37
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Ether rose 1.5% to $3,805.45
Bonds
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The yield on 10-year Treasuries advanced two basis points to 4.44%
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Germany’s 10-year yield advanced four basis points to 2.57%
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Britain’s 10-year yield advanced three basis points to 4.26%
Commodities
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Brent crude rose 0.2% to $82.07 a barrel
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Spot gold fell 0.8% to $2,359.95 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Richard Henderson and Chiranjivi Chakraborty.
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