Global stocks surge as Wall Street hits record highs

Global markets climbed on Thursday following a record-breaking performance on Wall Street on Wednesday, driven by excitement around artificial intelligence (AI) technology.

European markets saw gains as investors awaited the European Central Bank’s decision, anticipated to cut its key interest rate from the current high of 4%. France’s CAC 40 increased by 0.3% to 8,032.86, Germany’s DAX rose by 1% to 18,758.43, and Britain’s FTSE 100 edged up by 0.2% to 8,259.40. In contrast, futures for the Dow Jones Industrial Average fell 0.1%, while S&P 500 futures remained unchanged.

In Asia, Japan’s Nikkei 225 climbed 0.6% to 38,703.51, Hong Kong’s Hang Seng rose by 0.3% to 18,480.61, and the Shanghai Composite dropped 0.5% to 3,048.79. Australia’s S&P/ASX 200 increased by 0.7% to 7,821.80 following positive trade surplus data from the Australian Bureau of Statistics, showing a rebound in April. Taiwan’s Taiex surged 1.9%, despite Foxconn shares falling 1.2% after reporting a 22.1% year-on-year revenue increase for May. India’s Sensex added 0.7% following Prime Minister Narendra Modi’s coalition winning a parliamentary majority. Conversely, Bangkok’s SET index declined by 0.6%, and South Korea’s markets were closed for a holiday.

On Wednesday, the S&P 500 gained 1.2% to reach 5,354.03, the Nasdaq composite jumped 2% to a record 17,187.90, and the Dow Jones Industrial Average rose 0.2% to 38,807.33. Nvidia, a leading company in AI technology, saw its market value exceed $3 trillion, with its stock rising another 5.2%, totaling a year-to-date gain of more than 147%.

Economic data indicated mixed results: a report showed U.S. services sector growth, while another suggested slower-than-expected hiring. This led to a drop in Treasury yields, with the 10-year Treasury yield falling to 4.31% from 4.33% on Tuesday and 4.60% a week prior.

In commodities, U.S. benchmark crude oil increased by 52 cents to $74.59 per barrel, and Brent crude rose by 51 cents to $78.92 per barrel. The U.S. dollar strengthened to 156.37 Japanese yen from 156.10 yen, and the euro climbed to $1.0875 from $1.0868.

Overall, investor enthusiasm around AI and positive economic indicators contributed to market gains, while rate cuts and economic data influenced bond and currency markets.