As geopolitics cool, stocks climb ahead of Nvidia's report
Global stocks advanced on Wednesday as easing tensions between Russia and the West bolstered investor confidence, while markets awaited third-quarter earnings from AI powerhouse Nvidia (NASDAQ). Bitcoin hit a record high, and the dollar edged higher.
Safe-haven assets such as gold and government bonds gained ground on Tuesday after reports of Ukraine deploying U.S.-made long-range missiles into Russia and Moscow lowering the threshold for nuclear action. However, Russian Foreign Minister Sergei Lavrov later played down the nuclear threat, restoring a degree of calm and allowing investors to focus on upcoming market events.
The MSCI All-World index, which closed 0.4% higher on Tuesday, was steady on Wednesday. European shares gained 0.4%, and U.S. stock index futures rose 0.2%.
Nvidia, currently the world’s most valuable company, is set to release its quarterly earnings after the market closes. Its shares were up 0.3% in pre-market trading, with traders bracing for potential volatility. Options markets suggest the stock could swing as much as 9% in either direction. Nvidia's performance is closely watched as a barometer for the tech sector’s shift toward AI.
“Nvidia is naturally a key focus,” said Joshua Meyers, executive director at JPMorgan, in a note to clients. “A strong earnings beat is widely expected. However, there’s growing concern about the overly optimistic expectations for fiscal year 2026,” he added. Meyers emphasized that commentary from Nvidia CEO Jensen Huang would be crucial for aligning market expectations.
Meanwhile, Bitcoin surged to an all-time high above $94,000 overnight and was trading at $93,450, up 1.3%. The cryptocurrency has gained over 30% since the U.S. presidential election on November 5, amid speculation that Donald Trump’s victory could lead to a more favorable regulatory environment for crypto. Markets are also watching closely for Trump's Treasury secretary nomination, expected as early as Wednesday.
Strength in the Dollar
The U.S. dollar strengthened, rising 0.3% to 106.5, rebounding from recent lows. It has climbed nearly 3% since the election, driven by expectations that Trump’s policies on taxation, trade, and immigration will fuel economic growth and inflation.
“Market forces are likely to temper some of Trump’s policy ambitions,” noted Guy Miller, chief market strategist at Zurich Insurance Group. “A significant portion of his support came from voters concerned about inflation, so he’ll likely aim for policy moderation to avoid exacerbating those concerns.”
U.S. Treasury yields rose as investors locked in profits following Tuesday’s safe-haven rally. The 10-year Treasury yield climbed 4.5 basis points to 4.437%, near five-month highs, supporting the dollar.
Currencies like the Japanese yen and Swiss franc, which gained during Tuesday’s risk-off sentiment, weakened. The dollar rose 0.7% against the yen to 155.78 and 0.3% against the franc to 0.8851 francs. The Chinese yuan also dipped after the central bank maintained its benchmark lending rates, prompting mainland Chinese stocks to rise 0.2%. Hong Kong’s Hang Seng index followed suit with a similar increase.
Commodity Prices
Oil prices continued their upward momentum. Brent crude rose 0.76% to $73.87 a barrel, while West Texas Intermediate climbed 0.9% to $70.02.
Gold, traditionally a safe-haven asset, retreated, shedding 0.3% to trade at $2,623 an ounce.
Paraphrasing text from "Reuters" all rights reserved by the original author.
