By Amanda Cooper
Welcome to the latest update on global stocks and market trends! On Wednesday, global stocks reached record highs, driven primarily by a surge in tech shares. Notably, AI chipmaker Nvidia emerged as the world’s most valuable company, surpassing Microsoft. This rally in tech stocks propelled MSCI’s All-World index to new heights, reaching 805.43.
In the U.S., tech stocks saw significant gains, boosting chipmakers like Nvidia. This positive momentum extended to Asian markets overnight and led to a rise in U.S. stock index futures. European markets also experienced a slight uptick in early trading.
Meanwhile, the dollar remained relatively stable following soft U.S. retail sales data, which hinted at a potential rate cut later this year. The UK saw inflation return to the Bank of England’s 2% target, providing some relief for policymakers.
Despite these developments, market volatility remained subdued with U.S. markets closed on Wednesday. However, data indicating lackluster economic activity in the second quarter prompted expectations of a rate cut in September, with markets pricing in a 67% chance of easing.
Looking ahead, Fed officials are closely monitoring inflation and the labor market for signs that may warrant a rate cut later this year. The dollar held firm against a basket of currencies, while the Japanese yen remained stable against the dollar.
In the commodities market, oil prices saw a modest increase, with Brent crude futures up to $85.80 a barrel. This latest market update highlights the evolving dynamics in global markets and sets the stage for potential future developments.