Global Stocks Gain Ahead of Fed Cut as Nvidia Nears $5 Trillion Mark – Europe Market Wrap

Technology stocks kept driving global equities higher as hopes for a breakthrough by Nvidia Corp. in China reinforced optimism about artificial intelligence ahead of a likely Federal

Global equities advanced as investors awaited the Federal Reserve’s expected rate cut and a barrage of earnings from the world’s biggest technology companies, with optimism over US-China relations adding fuel to the rally.

The S&P 500 looked set to extend its record-setting run, with futures up 0.2%. Nvidia Corp. climbed 3% in premarket trading after President Donald Trump said he plans to discuss the chipmaker’s Blackwell processors with China’s Xi Jinping, putting the AI powerhouse on course to become the first $5 trillion public company.

Technology remains at the heart of the market story. Microsoft, Alphabet, Meta, Amazon, and Apple are all due to report within the next two days. Together with Tesla, the so-called Magnificent Seven are expected to deliver third-quarter profit growth of about 14%, nearly double the pace projected for the broader S&P 500.

Meanwhile, the Federal Reserve is widely expected to lower interest rates by a quarter point later Wednesday, with policymakers signaling continued support for the labor market. Investors will also look for clues on when the Fed might halt its balance-sheet runoff, a move that could ease liquidity conditions.

US Treasuries slipped across the curve, as traders braced for potential volatility should Fed Chair Jerome Powell strike a hawkish tone. The 10-year yield edged up one basis point to 3.99%, while the dollar snapped a two-day decline amid muted trading during the US government shutdown.

In Europe, equities edged higher, with mining stocks leading gains after copper hit a record high on the London Metal Exchange. The metal — a key barometer of global growth — surged as Washington and Beijing inched closer to a trade deal. Automakers also climbed after Mercedes-Benz Group AG posted upbeat results, underscoring confidence in its cash generation despite ongoing tariff headwinds.

Trade relations dominated headlines. Trump said he expects to lower tariffs on Chinese goods linked to the fentanyl crisis, as global leaders prepare to meet on Thursday. The Wall Street Journal reported the White House is considering cutting the 20% levy to 10%, a move seen as a goodwill gesture ahead of talks. In another sign of thawing ties, China bought at least two cargoes of US soybeans, its first purchase this season.

Elsewhere, Trump said he had reached a trade deal with South Korea, though he later clarified that the agreement was “close to finalized.” Futures on the Kospi 200 rose in response. Still, analysts noted the narrow breadth of the rally: while the Stoxx 600 advanced, more than half of its constituents declined, echoing Tuesday’s pattern in the S&P 500.