Nvidia Surges Again, Euro STOXX 600 Hits Record

Equities

On Thursday, the FTSE 100 saw a modest increase of 0.3%. Among the standout performers in the FTSE 100 was British insurer Beazley, which surged 8.9% after announcing a return of approximately $300 million to its shareholders, a gesture of confidence following a strong 2023 performance. Rolls-Royce also made headlines, leaping 8.3% to its highest in nearly six years. The engineering giant projected a profit rise of up to 25% this year, surpassing expectations after exceeding its targets last year.

However, the FTSE 100's gains were clearly tempered by its composition, which lacks significant technology stocks, a factor that has led to its underperformance relative to other indices for years and now particularly in light of the recent AI-driven rally.

Across the pond, the S&P 500 and Dow Jones Industrial Average reached record closing highs. This rally was largely driven by Nvidia, which saw its shares jump 16.4% after the chipmaker forecasted a tripling in first-quarter revenue, signalling strong demand for its AI chips. Nvidia's remarkable performance not only contributed to a record $277 billion increase in its market cap but also lifted the spirits and stock prices of its AI sector peers.

Other US companies riding the AI wave included Advanced Micro Devices, Super Micro Computer, and Arm Holdings, with their shares jumping significantly. Synopsys, a software maker for chip designers, also enjoyed a surge, reaching a record finish after beating earnings and outlook estimates.

In contrast, electric vehicle startups Rivian and Lucid faced downturns, with their shares tumbling after forecasting 2024 production targets that fell short of analyst expectations, highlighting concerns over slowing demand.

Forex & Commodities

The dollar index experienced a slight decline, shedding 0.03% to settle at 103.95. Despite a recent dip to a three-week low, the greenback has shown resilience, buoyed by robust growth and persistent inflation that have led traders to adjust their forecasts for the Fed's monetary policy easing. The euro edged up 0.03% to $1.0820, and the sterling appreciated 0.17% to $1.2656, buoyed by stronger-than-expected business activity data in Britain.

In the commodities market, gold prices ticked up by 0.1% to $2,025.7 per ounce, heading for the first weekly gain in three weeks, driven by a softer US dollar and escalating tensions in the Middle East.

Oil prices, however, took a different direction, with Brent crude futures falling by 0.5% to $83.29 a barrel, and US West Texas Intermediate crude futures dropping by 0.5% to $78.21. There remains optimism around demand, supported by less-than-expected rises in US crude inventories and potential increases in refinery run rates.