Shares rise as Nvidia results boost tech companies: Markets wrap

(Bloomberg) — European stocks and U.S. futures rose after upbeat earnings from Nvidia Corp. bolstered hopes for a global artificial-intelligence boom.

Most Read from Bloomberg

Europe's Stoxx 600 rose 0.3%, lifted by an uptick in the technology sector. S&P 500 futures pointed to a 0.5% gain at the Wall Street open. U.S. Treasuries were little changed after slipping on Wednesday when Federal Reserve minutes showed officials were in no rush to cut interest rates. Dollar trading was steady.

Equity markets are once again getting a boost from tech after Nvidia's much-anticipated earnings report produced another bullish sales forecast. A Bloomberg gauge of Asian chipmakers rose as much as 1.9%, its fourth straight day of gains.

« For anyone who doubts 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 Asset Management.

Traders in Europe will look at data after services, manufacturing and consumer confidence.

In Asia, Korea unveiled $19 billion in incentives to boost its chip industry, which Samsung Electronics Co. and SK Hynix Inc. A boon for them as they advance in an increasingly competitive industry.

Nvidia's earnings « provide more room for upside for Asian semiconductor stocks, » said Rajat Aggarwal, Asia strategist at Societe Generale SA in Bengaluru. « This extends the growth story and allays concerns about a slowdown for Asian chipmakers. »

At the same time, Hong Kong-listed tech stocks fell amid a price war between Alibaba Group Holding Ltd and Tencent Holdings Ltd over cloud services.

Gold extended its slide after falling 1.7% on Wednesday after the Fed minutes. West Texas Intermediate also slumped en route to its fourth daily loss. Copper prices fell on signs of slackening demand.

Also Read: Nvidia AI Stocks Clearing the Way for More Power

Highlights of this week:

• Eurozone S&P Global Services and Manufacturing PMIs, Consumer Confidence, Thursday

• G-7 Finance Meeting, May 23-25

• US new home sales, initial jobless claims, Thursday

• The central bank's Raphael Bostick speaks Thursday

• US Durable Goods, Consumer Sentiment, Friday

• The central bank's Christopher Waller speaks on Friday

Some key movements in the markets:

Shares

• The Stoxx Europe 600 was up 0.3% as of 8:17 a.m. London time.

• S&P 500 futures rose 0.5%

• Nasdaq 100 futures rose 0.9%

• The future of the Dow Jones Industrial Average was little changed

• The MSCI Asia Pacific Index was little changed

• The MSCI emerging market index fell 0.2%

The story continues

Coins

• The Bloomberg Dollar Spot Index was little changed

• The euro was little changed at $1.0820

• The Japanese yen rose 0.1% to 156.60 per dollar

• The offshore yuan was little changed at 7.2559 per dollar

• The British pound was little changed at $1.2720

Cryptocurrencies

• Bitcoin rose 0.1% to $69,497.04

• Ether rose 0.9% to $3,782.25

Bonds

• The yield on 10-year Treasuries was little changed at 4.41%.

• Germany's 10-year yield fell two basis points to 2.52%.

• Britain's 10-year yield fell two basis points to 4.21%.

materials

• Brent crude was down 0.4% at $81.61 a barrel

• Spot gold was down 0.7% at $2,362.53 an ounce

This story was produced with the help of Bloomberg Automation.

–With assistance from Richard Henderson and Sujata Rao.

Most read from Bloomberg Businessweek

©2024 Bloomberg LP