Nvidia Revenue Growth Slows, Bitcoin Nears $100K

Nvidia's forecast for its slowest revenue growth in seven quarters disappointed investors, weighing on tech markets globally and raising concerns about the AI-driven rally. Bitcoin surged to a record $97,798, nearing the $100,000 mark amid optimism about crypto-friendly policies under a Trump administration. Meanwhile, Indian conglomerate Adani Group saw shares plunge up to 20% after its chairman was indicted in a $265 million bribery scheme in New York.

Equities

The FTSE 100 slipped 0.2% on Wednesday, weighed down by hotter-than-expected UK inflation data, which tempered hopes for swift interest rate cuts. However, Sage Group outperformed significantly, with its shares soaring 18% to a record high after reporting a 21% rise in operating profit, supported by improved margins. Sage's management signalled confidence in continued progress, boosting sentiment in the technology sector, which surged 6.2%. On the downside, the domestically-focused FTSE 250 dropped 0.9%, hitting a three-month low. Household goods and home construction stocks fell more than 2.8%, while real estate investment trusts declined 1.6%. British Land dipped 1.4% despite a marginal profit increase.

In the US, the Nasdaq Composite fell 0.11%, dragged lower by weakness in technology stocks, including Nvidia, which slipped 0.76% during regular trading and dropped further after hours. Nvidia's revenue forecast narrowly exceeded estimates but failed to meet high investor expectations. The S&P 500 closed flat, and the Dow Jones Industrial Average rose 0.32%, driven by late-session gains.

Target plummeted 21.4% after forecasting a subdued holiday quarter following a disappointing third-quarter earnings report. Tesla and Amazon also declined, losing 1.15% and 0.85%, respectively. Growth stocks faced pressure amid broader market caution linked to geopolitical tensions and mixed corporate results.

Bitcoin’s rally above $94,000 boosted cryptocurrency stocks, with MicroStrategy jumping 10% and MARA Holdings rising 13.9%. Meanwhile, Nvidia shares, which have nearly tripled this year, remain pivotal for the S&P 500's annual returns.

In broader US market activity, the Information Technology sector slipped 0.23%, while the consumer discretionary index fell 0.57%, reflecting Target's sharp decline. However, volume on US exchanges totalled 13.20 billion shares, slightly below the 20-day average. Despite geopolitical concerns and mixed earnings, traders are leaning towards the Federal Reserve leaving interest rates unchanged in December.

Forex & Commodities

The US dollar eased slightly, with the dollar index dipping 0.11% to 106.49 after recent gains driven by expectations of less aggressive Federal Reserve rate cuts. Market pricing now suggests a 54% probability of a December rate cut, down from 82.5% last week. The euro edged up 0.09% to $1.0554, recovering some ground after slipping 0.5% the previous day. Meanwhile, the yen strengthened 0.51% to 154.63 per dollar following remarks by Bank of Japan Governor Kazuo Ueda, who signalled a cautious approach ahead of the December policy meeting.

Gold extended its rally for a fourth consecutive session, rising 0.3% to $2,657.40 per ounce, its highest since 11 November. Escalating geopolitical tensions, particularly in the Russia-Ukraine conflict, underpinned demand for safe-haven assets. US gold futures also gained 0.3% to $2,659.90. Silver rose 1.1% to $31.21 per ounce, while platinum and palladium added 0.3% and 0.7%, respectively.

Oil prices inched higher, with Brent crude and US West Texas Intermediate both up 0.2%, trading at $72.97 and $68.91 per barrel, respectively. Gains were tempered by a larger-than-expected increase in US crude inventories, which rose by 545,000 barrels against forecasts for a smaller rise. Gasoline stocks also increased, while distillate stockpiles saw a sharper draw. Norway's Equinor restored full capacity at the Johan Sverdrup oilfield, further stabilising supply. OPEC+ discussions continue ahead of their 1 December meeting, with potential adjustments to output increases on the agenda amid concerns over weak global demand.