Nvidia, the leading chipmaker, delivered exceptional results that triggered a rally in technology companies on Wall Street, driving global stock advancement. The impressive performance of Nvidia’s stock price has led to a surge in investor enthusiasm for artificial intelligence and semiconductors. As a result, other chipmakers and companies in the chipmaking industry also experienced significant gains.
The rally on Wall Street propelled the S&P 500 and Dow Jones Industrial Average to new record highs. Despite news of Germany’s GDP contracting in the last quarter of 2023, the DAX index in Germany still managed to add 0.1 percent. The CAC 40 in Paris gained 0.1 percent, and the FTSE 100 in London rose 0.1 percent. Tokyo’s markets were closed for a holiday following a surge to an all-time high.
In Hong Kong, the Hang Seng index remained virtually unchanged, while the Shanghai Composite index added 0.6 percent. Standard Chartered, a London-based lender generating most of its revenue from Asia, reported an 18 percent profit surge for 2023, surpassing expectations. This positive news led to a 2.2 percent increase in the company’s Hong Kong-listed shares.
Elsewhere in Asia, markets were mostly higher. Australia’s S&P/ASX 200 rose by 0.4 percent, and the Kospi in Seoul added 0.1 percent. In India, the Sensex gained less than 0.1 percent, while Bangkok’s SET remained unchanged.
The rally on Wall Street was fueled by strong earnings from technology stocks, which have been the driving force behind the market’s rally since October. Nvidia’s blowout quarter and soaring demand for its semiconductors contributed to its stock price surging by 16.4 percent. Synopsis, a software company involved in chip testing and development, also experienced a 6.9 percent gain after raising its profit forecast. Other chipmakers such as Advanced Micro Devices and Lam Research also saw significant increases, rising by 10.7 percent and 4.7 percent, respectively.
The focus on earnings in the market follows concerns raised by economic data the previous week, which showed higher-than-expected inflation and a significant fall in retail sales. These concerns impacted the market and raised questions about the timing of expected interest rate cuts from the Federal Reserve. However, Wall Street is now anticipating interest rate cuts to begin in June instead of March.
Investors will be closely watching for the government’s monthly report on personal consumption and expenditures, which will provide more clarity on inflation. Bond yields remained relatively steady, with the yield on the 10-year Treasury rising slightly.
In energy trading, U.S. benchmark crude oil experienced a loss, falling to $77.84 a barrel, while Brent crude, the international standard, dropped to $82.02 per barrel. The U.S. dollar saw a slight increase against the Japanese yen, trading at 150.64 yen, and the euro rose marginally against the dollar.
Overall, Nvidia’s outstanding performance has had a significant impact on global stock markets, driving a rally in technology companies and pushing Wall Street to new record highs. The strong earnings from technology stocks have helped justify and reinforce the market’s gains, despite concerns about inflation and retail sales. Investors are now eagerly awaiting further economic data to gain more clarity on inflation and the anticipated interest rate cuts from the Federal Reserve.
