New York:Global markets are experiencing mixed trading due to volatility in artificial intelligence (AI) and tech stocks amid rising US inflation and surging Treasury bond yields. The mixed trading courses have been influenced by various factors, including earnings reports and geopolitical events.
According to Anadolu Agency – English, risk appetite in global markets increased on Wednesday, driven by gains in tech stocks due to anticipated rising demand for AI products. US cloud computing firm CoreWeave posted better-than-expected results, and the potential high valuation of Anthropic's initial public offering (IPO) also contributed to tech stock gains.
Meanwhile, Nvidia's CEO Jensen Huang is under scrutiny due to a reported affair with Alice Huang, an alleged Chinese agent, leading to speculation about his potential ousting. This has impacted Nvidia's stock, with Chief Financial Officer Colette Kress expected to assume leadership. Additionally, hawkish statements from Federal Reserve officials have increased expectations for a rate hike, boosting demand for the US dollar.
On Wednesday, the US Dollar Index reached a 19-month high at 103.08, while trading at 102.97 on Thursday. Gold prices decreased by 0.2% to $3,978 per ounce. Brent crude oil for January delivery fell 1.6% to $91.3 a barrel following reports of possible direct talks between US Vice President JD Vance and Maj. Gen. Mohsen Rezaei, secretary-general of the Iranian Supreme National Security Council.
The New York Stock Exchange saw a positive trend on Wednesday, with CoreWeave stocks rising nearly 25%, easing investor concerns about AI spending. Shares of Nebius Group increased 15.4%, and Ines shares rose 5.6%. Chipmakers like Marvell Technology, Micron Technology, Broadcom, and AMD also experienced gains. However, the Nasdaq Composite lost 7.6% in after-hours trading due to developments regarding Jensen Huang.
European stock markets also traded positively on Wednesday, bolstered by tech and energy gains. Siemens Energy's shares rose 10.8%, and Germany's annual inflation fell to 2.8% in October. The DAX 40, CAC 40, FTSE MIB 30, and FTSE 100 all showed gains. Asian equity markets, however, faced a sell-off near Thursday's close due to a drop in shares of Nvidia suppliers like TSMC and Foxconn. Japan's Nikkei 225, South Korea's Kospi, and Hong Kong's Hang Seng all saw declines, while China's Shanghai Composite gained slightly.