Nvidia soars over $1000, PMIs out today

Equities

The FTSE 100 turned lower, closing at a two-week low after UK inflation figures for April showed a hotter-than-expected rise, tempering hopes for an anticipated June rate cut by the Bank of England. The index fell by 0.6%, marking its largest drop in more than a month. In contrast, Marks & Spencer's shares surged 5.2%, leading the gains in the index, after the retailer reported a significant 58% increase in annual profit, surpassing market expectations.

The Dow Jones Industrial Average dropped by 0.51%, losing 201.95 points to settle at 39,671.04. The S&P 500 wasn’t spared either, dipping 0.27% to close at 5,307.01, while the Nasdaq Composite saw a modest fall of 0.18%, ending the day at 16,801.54.

Nvidia’s shares saw a significant uptick, rising approximately 6% after hours. This rise came after a weakening in Nvidia's stock earlier in the day as investors pre-emptively took profits before the results came out. Nvidia announced a 10-for-1 stock split and highlighted a remarkable 427% year-over-year growth in data centre sales. Additionally, Nvidia reported increased sales in networking, gaming, and automotive sectors, along with share buybacks and a dividend increase.

Analog Devices stood out with a substantial gain of 10.86% after it projected third-quarter revenue that would surpass forecasts. The energy sector underperformed, with a drop of 1.83%, as oil prices declined for the third consecutive session, reflecting investor apprehension about prolonged high US interest rates.

Retail giant Target reported disappointing quarterly earnings and a weak forecast for the current quarter, which saw its shares plummet by 8.03%. On a more positive note, TJX Companies, parent of TJ Maxx, climbed 3.5% after raising its annual profit forecast.

Forex & Commodities

The dollar index saw a slight increase of 0.28% overnight whilst the New Zealand dollar strengthened following a surprise rise in retail sales, which pushed expectations for rate cuts further into the future.

Sterling also firmed, reaching a one-month peak, propelled by higher-than-expected UK inflation figures that dampened prospects for an imminent rate cut by the Bank of England.

In commodities, gold prices dropped for a third consecutive session, down 0.3% to $2,370.74 per ounce, influenced by the Fed's minutes which suggested that rate cuts were not on the near horizon. Oil prices also declined, with Brent crude and West Texas Intermediate both falling over 1% after US crude inventories rose unexpectedly by 1.8 million barrels last week, countering previous forecasts of a draw.