Global markets rose on Thursday. They were following record highs on Wall Street Wednesday. The rise was driven by the ongoing excitement about artificial intelligence.
European Market Update
European markets opened higher. Investors expected a decision by the European Central Bank. The bank is expected to lower its key interest rate from a record high of 4% later in the day.. France’s CAC 40 increased by 0.3% to 8,032.86, and Germany’s DAX surged 1% to 18,758.43. Britain’s FTSE 100 edged up 0.2% to 8,259.40.
Market Highlights
- Futures for the Dow Jones Industrial Average were down 0.1%, while the S&P 500 futures remained unchanged.
- In Asia, Tokyo’s Nikkei 225 index climbed 0.6% to 38,703.51. Hong Kong’s Hang Seng rose 0.3% to 18,480.61, while the Shanghai Composite index dropped 0.5% to 3,048.79.
- Australia’s S&P/ASX 200 rose by 0.7% to 7,821.80. This was after the Australian Bureau of Statistics announced a rise in the country’s trade surplus for April. Exports fell by 2.5% and imports by 7.2%. Taiwan’s Taiex index jumped by 1.9%. This was despite Foxconn’s shares falling by 1.2%. Foxconn reported a 22.1% increase in May revenue, marking a new high for the month.In India, the Sensex climbed by 0.7%. This was after Prime Minister Narendra Modi’s coalition won a majority in Wednesday’s national elections.In Bangkok, the SET lost 0.6%.
- South Korea’s markets were closed for a holiday.
Recent Market Performance
On Wednesday, the S&P 500 climbed 1.2% to 5,354.03. The Nasdaq composite jumped 2% to 17,187.90, both setting records. The Dow Jones Industrial Average, with less emphasis on tech, gained 0.2% to 38,807.33.
Tech Industry Update
The rally boosted Nvidia’s total market value above $3 trillion for the first time, as its chips are driving much of the AI boom. Nvidia’s shares rose 5.2%, bringing its yearly gain to over 147%. Nvidia joined Microsoft and Apple as the only U.S. stocks to top $3 trillion in total value. Apple also regained this valuation milestone after rising 0.8% on Wednesday.
Economic Insights
- The retail industry has made it clear that high inflation is a challenge for low-income U.S. households. Meanwhile, bond market yields dropped due to mixed economic signals. One report highlighted growth in the services sector, like real estate and health care. It outpaced predictions and showed slower price rises in May than in April. Another report revealed that hiring outside the government slowed more than expected. These weaker reports raised hopes for Federal Reserve rate cuts. Consequently, the 10-year Treasury yield fell to 4.31% from 4.33% on Tuesday and 4.60% a week ago.
Energy and Currency Update
In other news, U.S. benchmark crude oil gained 52 cents to $74.59 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, rose 51 cents to $78.92 per barrel.
The U.S. dollar increased to 156.37 Japanese yen from 156.10 yen, and the euro climbed to $1.0875 from $1.0868.