US stock markets climbed on Wednesday, driven by optimism over Big Tech profits, while European indices declined.
Oil prices also rose in anticipation of an upcoming OPEC+ meeting, and the dollar strengthened slightly against major currencies.
Investors closely monitored US chipmaker Nvidia, which has become a key indicator for tech stocks. The firm is navigating strong demand from AI development alongside ongoing US semiconductor export restrictions to China.
Nvidia shares dipped at the opening bell on Wednesday, following a sharp rise the previous day ahead of its earnings report. The tech-heavy Nasdaq edged up by 0.3%.
“This is expected to be another quarter of massive revenue for Nvidia, but it raises the familiar question — can this momentum continue?” said Kathleen Brooks, research director at XTB.
In contrast, European markets fell by mid-afternoon, echoing a broader sell-off in Asia. Analysts noted that enthusiasm from a two-day rally, sparked by Donald Trump’s announcement to pause a 50% tariff on the EU, had faded.
“Markets no longer take Trump at his word when he makes sweeping tariff threats,” Brooks added, pointing out that such moves are often reversed before taking effect.
David Morrison, senior market analyst at Trade Nation, remarked, “Investors seem to believe everything will work out for the best, but this optimistic view could be tested if a US-EU deal proves elusive.”
The Japanese yen dropped after a poorly received 40-year government bond auction — the weakest take-up since July.
Concerns over rising government debt costs in Japan and the US have persisted for weeks. Some analysts believe perceptions around US debt are shifting, noting that while the dollar rose on Wednesday, this masked deeper concerns about its long-term value.
“US assets no longer offer the haven they once did,” said Stephen Innes of SPI Asset Management. “Dollar strength is no longer automatic — it’s up for debate.”
In corporate news, European carmaker Stellantis appointed Antonio Filosa, head of its North American operations, as CEO following the dismissal of Carlos Tavares in December. Filosa will assume full CEO powers from June 23.
Key Figures at 13:35 GMT:
- New York – Dow Jones: +0.2% at 42,505.22
- New York – S&P 500: +0.2% at 5,931.22
- New York – Nasdaq: +0.3% at 19,248.13
- London – FTSE 100: −0.1% at 8,767.41
- Paris – CAC 40: Unchanged at 7,824.29
- Frankfurt – DAX: −0.3% at 24,148.44
- Tokyo – Nikkei 225: Flat at 37,722.40 (close)
- Hong Kong – Hang Seng: −0.5% at 23,258.31 (close)
- Shanghai – Composite: Flat at 3,339.93 (close)
Currency Rates:
- Euro/dollar: $1.1314 (down from $1.1329)
- Pound/dollar: $1.3477 (down from $1.3504)
- Dollar/yen: ¥144.74 (up from ¥144.34)
- Euro/pound: 83.96p (up from 83.88p)
Oil Prices:
- Brent Crude: +1.3% at $64.37 per barrel
- WTI Crude: +1.5% at $61.81 per barrel
