Global Markets: Global stock markets climbed on Tuesday as investors continued riding Wall Street’s record-breaking streak, while awaiting Federal Reserve Chair Jerome Powell’s highly anticipated speech for further guidance on interest rate policy.
US equities reached new all-time highs for the third consecutive day on Monday, with the S&P 500 gaining 0.4%, the Dow Jones Industrial Average adding 66 points, and the Nasdaq Composite surging 0.7%. The rally was largely driven by artificial intelligence optimism and expectations of continued Federal Reserve easing.
AI Deal Fuels Tech Rally
The market’s latest surge centered on Nvidia, which soared 3.9% after announcing a massive partnership with OpenAI. The chipmaker plans to invest up to $100 billion in the AI research company as part of an ambitious data center expansion requiring 10 gigawatts of energy—equivalent to powering over 8 million U.S. households.
“This is the largest AI infrastructure project in history,” Nvidia CEO Jensen Huang said, highlighting the deal’s potential to reshape the data center landscape.
Oracle also contributed to the tech momentum, climbing 6.3% after the White House confirmed its role in a TikTok agreement for U.S. operations.
Global Markets Follow Wall Street’s Lead
Asian markets showed mixed results on Tuesday, with Tokyo closed for a national holiday. South Korea’s Kospi gained 0.5%, driven by semiconductor and pharmaceutical stocks, while Taiwan’s Taiex hit a record high with a 1.42% jump. However, Hong Kong’s Hang Seng fell 0.9%, and China’s Shanghai Composite declined 0.2%.
In Europe, stocks opened higher. The pan-European Stoxx 600 gained 0.3%, Germany’s DAX rose 0.3%, France’s CAC 40 climbed 0.4%, and Britain’s FTSE 100 advanced 0.2%. Wind energy shares led gains after a favorable U.S. court ruling allowed Denmark’s Orsted to resume work on a Rhode Island offshore wind project.
Powell Speech Market Impact
All eyes are now on Fed Chair Jerome Powell, who is set to speak at the Greater Providence Chamber of Commerce at 12:35 PM ET. Following last week’s quarter-point rate cut to 4.00%–4.25%, investors are eager for clues about the central bank’s future policy direction.
The CME FedWatch tool indicates a 90% probability of another 25 basis point cut in October and a 75% chance of further easing in December. Gold reached a record high near $1,975 per ounce amid rate cut expectations, reflecting investors’ flight to safe-haven assets.
“Every time the market seems to be running out of momentum, it fools most of us by pushing to higher heights,” said Jay Woods, chief market strategist at Freedom Capital Markets, underscoring the resilience of equity markets even as rate cuts loom.
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