European Stocks Climb Higher Amid Mixed Corporate Earnings – Europe Market Wrap

Friday saw a brief lull in the markets as traders evaluated the prospects for stocks following the record highs reached by indexes in the US, Europe, and Japan following Nvidia’s spectacular earnings.

US futures saw minimal movement following overnight gains that set new records for the S&P 500, Nasdaq 100, and MSCI’s all-county index. After shares increased as much as 2.7% in premarket trading on Thursday, compounding the company’s explosive rise, Nvidia is on course to reach $2 trillion in market value for the first time ever.

The largest single-session increase in value ever occurred on Thursday as Nvidia added $277 billion to its market capitalization in a single day, surpassing Meta’s most recent gain of $197 billion. The question is whether the tech surge can continue and spread to other industries, even as expectations of a rate cut by the Federal Reserve are fading in the face of data indicating that the largest economy in the world is still expanding.

After senior Fed officials reiterated on Thursday that the US central bank is still planning to lower interest rates this year—just not anytime soon—the yield on the 10-yr Treasury note remained stable. The dollar index was flat.

The STOXX Europe 600 index nudged higher on mixed earnings after closing at a record on Thursday.

ECB Survey: Inflation expectations over the next 12 months at 3.3% in January vs 3.2% in December, expectations 3 years ahead unchanged at 2.5% – CES.