Wed, Jul 24, 2024
World stocks rise after Wall Street barrels to records

World stocks rise after Wall Street barrels to records

  • PublishedJune 6, 2024

HONG KONG – Global markets rose Thursday after Wall Street barreled to records Wednesday as the frenzy around artificial-intelligence technology keeps sending stocks higher.

European markets opened higher as investors awaited a decision by the European Central Bank. It is expected to cut its key interest rate from a record high of 4% later in the day. France’s CAC 40 rose 0.3% to 8,032.86, and Germany’s DAX surged 1% to 18,758.43. Britain’s FTSE 100 edged up 0.2% to 8,259.40.

The future for the Dow Jones Industrial Average was down 0.1% while the S&P 500 future remained unchanged.

In Asian trading, Tokyo’s Nikkei 225 index climbed 0.6% to 38,703.51. The Hang Seng in Hong Kong was 0.3% higher to 18,480.61 and the Shanghai Composite index dropped 0.5% at 3,048.79.

Australia’s S&P/ASX 200 gained 0.7% to 7,821.80 after data from the Australian Bureau of Statistics showed the country’s trading surplus rebounded in April, with exports falling 2.5% and imports dropping 7.2%.

Taiwan’s Taiex surged 1.9%, with contract electronics maker Foxconn’s shares losing 1.2% despite the company reporting its revenue rose 22.1% year-on-year in May, a record high for the month.

In India, the Sensex added 0.7% after Wednesday Prime Minister Narendra Modi’s coalition won a majority in parliament in the country’s national elections. In Bangkok, the SET lost 0.6%.

South Korea’s markets were closed for a holiday.

On Wednesday, the S&P 500 climbed 1.2% to 5,354.03. The Nasdaq composite jumped 2% to 17,187.90 and likewise set a record. The Dow Jones Industrial Average, which has less of an emphasis on tech, lagged the market with a gain of 0.2% to 38,807.33.

The rally pushed the total market value of Nvidia, which has become the poster child of the AI boom, above $3 trillion for the first time.

Nvidia is leading the way because its chips are powering much of the rush into AI, and it rose another 5.2% to bring its gain for the year to more than 147%.

The chip company also joined Microsoft and Apple as the only U.S. stocks to ever top $3 trillion in total value. Apple regained that milestone valuation after rising 0.8% Wednesday.

The broad retail industry has been highlighting challenges for lower-income U.S. households, which are trying to keep up with still-high inflation.

Treasury yields fell in the bond market following some mixed data on the economy. One report said real estate, health care and other businesses in the U.S. services sector returned to growth last month and beat economists’ forecasts. Perhaps more importantly for Wall Street, the report from the Institute for Supply Management also said prices rose at a slower pace in May than a month before.

Another report suggested hiring slowed last month by more than expected at U.S. employers outside the government.

Treasury yields sank after the weaker-than-expected economic reports raised expectations for coming cuts to rates by the Federal Reserve. The yield on the 10-year Treasury fell to 4.31% from 4.33% late Tuesday and from 4.60% a week ago.

In other dealings, U.S. benchmark crude oil gained 52 cents to $74.59 per barrel in electronic trading on the New York Mercantile Exchange.

Brent crude, the international standard, was up 51 cents to $78.92 per barrel.

The U.S. dollar rose to 156.37 Japanese yen from 156.10 yen. The euro climbed to $1.0875 from $1.0868.

Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

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