As Bonds Find Relief, Stocks Rise Ahead of Nvidia – Europe Market Wrap
Stocks regained ground as the bond selloff calmed as traders awaited earnings from Nvidia, the world’s most valuable firm and a pillar of the AI trade.
The S&P 500 was poised to snap a three-day losing streak, with futures up 0.3%. Nasdaq 100 contracts rose 0.7%. Bond rates in the US and Europe fell from multiyear highs as speculators reduced their aggressive bets on interest rate increases this year. Brent declined by 1.8% to $109 per barrel.
Nvidia will provide a much-anticipated update on the condition of the AI economy when it reports after the close. While sales are expected to increase by 80%, investors will be more interested in Nvidia’s plans to scale up manufacturing and compete.
In Europe, the Stoxx 600 increased for the third consecutive day. MSCI’s Asia-Pacific index fell as much as 1.3%, with Samsung and TSMC being the most significant drags.
UK gilts outperformed global rivals after a weaker-than-expected UK inflation report encouraged traders to reduce bets on the amount of the BoE’s rate hikes this year.
