ALBAWABA – Stocks worldwide rose Wednesday across the United States (US), United Kingdom (UK), the Eurozone and Asia, as the shares of US banks tumbled Tuesday after credit rating company S&P downgrading several lenders the day before.
European stocks climbed after mixed Asia trading, with the Paris CAC 40 up 0.4 percent and the DAX in Frankfurt climbed up 0.4 percent, as reported by Agence France-Presse (AFP).
London's benchmark FTSE 100 index was up 0.3 percent at 7,293.12 points in early trading, the Paris-based news agency reported.
Shares of several US banks fell on Tuesday after ratings agency S&P Global downgraded some regional lenders with high commercial real estate exposure, following another downgrade by Moody's last week.
Citgroup, Wells Fargo, Goldman Sachs and Morgan Stanley each dropped about 1 percent, according to Reuters, and KeyCorp, Comerica and Associated Banc-Corp shares sank more than 3 percent. While Valley National and UMB Financial slid between 2 and 4 percent.
Wall Street shares opened higher on Wednesday with the spotlight firmly on Nvidia.
Stocks worldwide up on hopes that Nvidia would reignite AI-driven rally
Investors are anticipating Nvidia’s results as they could reignite an artificial intelligence-powered rally in mega-cap growth stocks, Reuters reported.
Positive bets that Nvidia's revenue target will once again surpass Wall Street estimates pushed the chipmaker's stock to a record high on Tuesday. But analysts also fear that a failure to match investor expectations could trigger a wider selloff.
The company’s shares were up 0.8 percent in premarket trading.
A blowout forecast by the company last quarter has been one of the biggest catalysts for the S&P 500's 14 percent gain so far this year.
"When the market takes a focus on one stock, any disappointment could have a reverberation in the market," said Andre Bakhos, managing member at Ingenium Analytics LLC.
Tesla shares fell 2.1 percent after a report that the company lowered the production target of its German plant, according to the Canada-based news agency.
Some equities traded mixed but stocks worldwide ticked up on Wednesday
Futures for US and European stocks rose with contracts for US equities advancing more than 0.3 percent on Wednesday, Bloomberg reported.
Asian equities traded mixed, with mainland Chinese stocks under pressure again despite fresh signs of an earnings recovery among the country’s tech giants. But shares in Hong Kong, Japan and Australia extended gains from yesterday.
Baidu Inc. jumped more than 5 percent after its revenue rose the most in more than a year. The company reported a larger-than-projected jump in sales for the June quarter and its net income rose 43 percent.
Markets summary by Bloomberg
S&P 500 futures rose 0.3 percent as of 6:59 a.m. London time.
The S&P 500 fell 0.3 percent
Nasdaq 100 futures rose 0.5 percent. The Nasdaq 100 fell 0.2 percent
Japan’s Topix rose 0.5 percent
Australia’s S&P/ASX 200 rose 0.5 percent
Hong Kong’s Hang Seng rose 1.1 percent
The Shanghai Composite fell 0.3 percent
Euro Stoxx 50 futures rose 0.3 percent
