Find out what happened in the markets today - and why you should care - with the free Daily Brief newsletter.
Global stocks are on the rise as investors closely watch Nvidia's upcoming third-quarter earnings, driven by the chipmaker's nearly 200% share surge this year.
What does this mean?
Nvidia's dominant role in the AI chip industry has made it a market focal point, with many eagerly anticipating its financial results as a key AI market indicator. The Bank of Japan's governor hinted at potential rate hikes while the yen's slide against the dollar complicates timing. In the US, the 10-year Treasury yield stands strong at 4.4315%, with the Fed maintaining higher borrowing costs. Meanwhile, possible tariff and immigration policy shifts could stoke inflation, potentially limiting future monetary easing.
Robust Treasury yields and a strong dollar create challenges, impacting currencies like the euro and sterling. The yen's decline might prompt Japanese policy shifts. Chinese markets are gaining, with CSI300 and Shanghai Composite both up over 1%, signaling renewed investor interest. In Europe, recent economic data and political changes have ECB doves considering their next move.
The bigger picture: Fueling the financial flames.
Brent crude's slight rise to $71.17 and spot gold's 1.24% gain reflect cautious optimism in commodities. As global economic factors shift, including US policy changes, investors remain wary, balancing inflation risks with opportunities in growing sectors.