Global stock markets remained near all-time highs on Wednesday as investors awaited Nvidia’s earnings report.
The MSCI index of all global stocks rose 0.03 percent to 831.07, approaching its record close of 831.34 on August 23, as market turmoil at the start of the month eased amid signs that policymakers have begun to rein in the worst rise in inflation in 40 years.
The European benchmark STOXX index climbed 0.4 percent to a one-month high, boosted by technology stocks ahead of rosy expectations for Nvidia’s earnings update later in the day.
Nvidia’s market value has grown tremendously thanks to its dominance in the computer hardware behind artificial intelligence. Its share price has risen by around 3000% since 2019, and with a market cap of $3.2 trillion, a move in its share price has an impact on the broader market.
Second-quarter revenue is expected to have doubled, but even that is likely to disappoint expectations. Options prices show traders are expecting a swing of nearly 10% – or $300 billion – likely the biggest swing in earnings ever.
S&P 500 (.SPX) futures and Nasdaq 100 futures fell slightly as investors held off ahead of crucial earnings reporting.
Any disappointment in Nvidia’s results could hurt megacaps and other semiconductor stocks that have led the 2024 rally on the assumption that integrating artificial intelligence could boost corporate profits.
Meanwhile, Australian gaming company Tabcorp’s share price was heading for its biggest drop since 2008, falling 17 percent to a four-year low after the company warned it would miss its profit targets due to compliance and other costs.
Debt and currency markets were stable in the Asian session, although the Australian dollar briefly hit its highest since January at $0.6813 after monthly inflation data came in slightly above market forecasts.
Globally, the weakening of the US dollar in anticipation of interest rate cuts by the US Federal Reserve has boosted most other currencies, as markets expect short-term US interest rates, currently above 5.25%, to fall the most.
The greenback held near its lowest level in over a year against a basket of parallel currencies, last trading 0.4 percent higher at 100.98, above its 13-month low of 100.51 hit in the previous trading session.
News.Az
