Asian markets rose on Thursday following a surge in Wall Street records fueled by the excitement surrounding artificial intelligence technology. U.S. futures and oil prices also saw gains. In Tokyo, the Nikkei 225 index climbed 0.9%, while the Hang Seng in Hong Kong and the Shanghai Composite index in China also gained. Australia’s S&P/ASX 200 saw a 0.7% increase after a rebound in trading surplus data. Taiwan’s Taiex surged 2%, with Foxconn reporting a record-high revenue increase in May. South Korea’s markets were closed for a holiday.
On Wednesday, the S&P 500, Nasdaq composite, and Dow Jones Industrial Average all saw gains, with the S&P 500 hitting the top of its all-time high. The rally pushed the total market value of Nvidia above $3 trillion for the first time, with the chip company leading the AI boom. Tech stocks, including Nvidia, Apple, and Microsoft, saw gains, while Dollar Tree faced a 4.9% drop following matched profit expectations but falling revenue. The retail industry highlighted challenges for lower-income households trying to keep up with inflation.
Treasury yields fell after mixed economic data, with reports on the services sector and hiring impacting market expectations. Wall Street has been hoping for an economic slowdown to drive down inflation and lead to interest rate cuts by the Federal Reserve, but there is a concern about potential recession. The next big move for Treasury yields may come with the release of the monthly jobs report on Friday, which economists expect to show a slight pickup in overall hiring. U.S. benchmark crude oil and the U.S. dollar also saw movements in trading.
Overall, the global financial markets have been impacted by the continued momentum in AI technology stocks and the anticipation of potential interest rate cuts by the Federal Reserve. The mixed economic data and ongoing trade surpluses in certain countries contribute to market volatility but also present opportunities for growth. Investors will be closely watching further developments in the technology sector, as well as upcoming economic reports and policy decisions by central banks to gauge the future direction of the markets.
