OpenAI’s $500 Billion Valuation Sparks Global Equity Surge Despite US Shutdown – Europe Market Wrap
Technology shares propelled global benchmarks to new peaks after an OpenAI stock sale vaulted the firm into the world’s most valuable startup, amplifying enthusiasm for artificial intelligence.
Nasdaq 100 contracts advanced 0.4%, setting the gauge on course for a fifth consecutive gain. Europe’s Stoxx 600 climbed 0.7%, powered by a rally of more than 2% in technology groups. In Asia, equities pushed past last month’s all-time closing high as chipmakers surged. MSCI’s world index also logged another record.
OpenAI’s valuation leapt to $500 billion after current and former employees sold roughly $6.6 billion in shares, more than lifting the company’s price tag from its prior $300 billion level. The ChatGPT developer also sealed agreements with South Korean firms to supply semiconductors for its Stargate project.
The AI-driven surge has carried global equities to repeated milestones, with an expected restart of interest-rate cuts and resilient corporate earnings adding to the bullish momentum. For now, investors are brushing aside risks from Washington’s political gridlock, which has triggered the first US government shutdown in nearly seven years.
In commodities, gold extended its historic climb while crude oil slid for a fourth day. West Texas Intermediate dropped toward $61 a barrel, hitting its lowest mark in four months as expectations of OPEC+ restoring supply stoked fears of oversupply.
The dollar was largely steady. Treasuries mostly sustained Wednesday’s gains, with the 10-year yield flat at 4.09%. After Fed cut expectations drove yields down from January’s 4.80% peak, traders are now grappling with a temporary blackout in economic data caused by the shutdown.
The Bureau of Labor Statistics’ nonfarm payrolls release, originally due Friday, will likely be delayed alongside weekly jobless claims data scheduled for today. Derivatives markets are almost fully pricing a quarter-point rate reduction at month’s end and see an 80% chance of another cut in December to support a cooling labor market.
