While investors anticipated comments from Federal Reserve Chair Jerome Powell and predictions of US interest rate cuts drove gold to record highs, global markets increased Tuesday as excitement about AI lifted tech companies.
Driven by gains in Europe and Asia, the MSCI World Equity Index, which measures stocks in 49 countries, increased by 0.1%. Following a tech-driven rise that sent indexes to record closing highs on Monday for the third consecutive session, Wall Street equities were expected to hang onto their gains.
Powell’s remarks, which are expected later today, could have a significant impact on interest rate expectations at a time when markets are analyzing conflicting Fed signals, with some officials arguing for gradual rate decreases to control inflation.
Futures for the US stock index remained stable, with Nasdaq 100 E-minis gaining a meager 0.3% and S&P 500 E-minis essentially staying the same.
Nvidia declared on Monday that it would invest up to $100 billion in OpenAI, with the first data centre equipment expected to be delivered in 2026’s second half. The stock’s growth highlighted its broader significance as it reached a record high.
According to George Saravelos, global head of FX research at Deutsche Bank, “it may not be an exaggeration to write that NVIDIA – the key supplier of capital goods for the AI investment cycle – is currently carrying the weight of US economic growth.
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