A surge in global stock market rallied after Nvidia’s strong sales forecast. Stocks in Europe rallied nearly 0.9% and followed the surge in Asian stocks and US equity futures contracts. The Japanese stocks also hit a record high in 1989 driven by technology shares and chip-gear producers. Stock also increased in South Korea, Taiwan, and China where stocks rose to its highest level in two years. Asian countries are looking set to overcome January losses this month, boosted by recovery in China and gains in Japan.
The recent rally was started by Nvidia’s blowout sales forecast surrendered to the investors’ conviction in technology and semiconductor companies during the boom in generative AI use. Some major moves in the market include S&P 500 futures rose to 0.8% as well as Nasdaq 100 futures rose to 1.5%. The Euro Stoxx 50 futures also increased by 0.8%. The Bloomberg Dollar Spot Index dropped by 0.1%, while the offshore yuan was little changed at 7.1980 per dollar. Gold went up by .2% selling at $2,029.92 an ounce excitedly tells us. The Asian’s stock market previously lost had some significant losses in January but has turned the tide and was up by a significant amount.
“We think government will continue its supportive policies, which has a positive spillover for Asia,” Yifan Hu, regional CIO and head of Asia Pacific macroeconomic at UBS Wealth Management told Bloomberg television. “For Asia, GDP growth will be better than last year compared to the rest of the world.” The market movement shows continued signs of recovery and growth at a much faster pace than it was earlier in the year. There is also a positive sign for economic uplift as Asian countries are set to recover from the losses observed in the previous month.
