Nasdaq Hits Record High as Nvidia Extends AI Rally

The Nasdaq closed at another record high after Nvidia and other AI-linked technology stocks pushed US markets higher despite rising inflation concerns and firmer Treasury yields. Ford shares surged after Morgan Stanley backed the carmaker’s energy and battery strategy, while the FTSE 100 also advanced as mining and banking stocks recovered in London trading. The US dollar strengthened against both the euro and pound, oil prices held above $100 a barrel and gold steadied as investors watched the Trump-Xi summit in Beijing and developments around Iran.

Equities

The FTSE 100 closed 0.58% higher on Wednesday, recovering from an early dip as mining and banking shares rebounded. Industrial miners climbed 4.36%, while banks added 1.44%, helping London equities push higher despite renewed political pressure on Prime Minister Keir Starmer after reports that Health Secretary Wes Streeting could resign within days.

Intertek closed 5.28% higher on Wednesday after the testing and inspection company said it was prepared to recommend a £9.4 billion takeover proposal from Swedish private equity group EQT. Investors responded positively to the prospect of a deal that would value the company well above recent trading levels.

Political uncertainty remained in focus in the UK after concerns grew that a leadership challenge against Starmer could trigger a change in fiscal policy. Economists warned that any successor may support looser public spending plans at a time when government finances are already under strain.

In the United States, the S&P 500 rose 0.58% on Wednesday to a fresh record close, while the Nasdaq Composite jumped 1.20% as investors returned to artificial intelligence and semiconductor shares. The Dow Jones Industrial Average slipped 0.14%.

Nvidia closed 2.3% higher on Wednesday as investors reacted to Chief Executive Jensen Huang joining Donald Trump’s delegation for talks with Chinese President Xi Jinping in Beijing. Tesla also gained 2.7% during the session, with Elon Musk taking part in the same visit as discussions centred on trade, technology and access to Chinese markets.

Ford delivered one of the strongest moves on Wall Street, surging 13.2% on Wednesday after Morgan Stanley highlighted the carmaker’s energy business and partnership with Chinese battery group CATL as a competitive advantage. The gain marked Ford’s largest one-day rise in six years.

Nebius Group jumped 15.7% after the AI cloud company reported quarterly revenue that was nearly eight times higher than a year earlier. EchoStar rose 3.0% after the Federal Communications Commission approved the sale of wireless spectrum assets to SpaceX and AT&T.

Cryptocurrency-linked shares moved lower, with Coinbase falling 2.8% and Strategy dropping 3.5% as bitcoin and ethereum prices weakened.

Forex & Commodities

The US dollar held firm early on Thursday, supported by rising Treasury yields and growing expectations that the Federal Reserve may raise interest rates later this year. The dollar index traded at 98.48, heading for a weekly gain, while the euro remained under pressure at $1.171 and sterling slipped to $1.352 against the US currency amid continued political uncertainty in the UK.

The Japanese yen strengthened slightly during Asian trading on Thursday, with the dollar easing to 157.9 yen after comments from Bank of Japan board member Kazuyuki Masu. He said the central bank should move quickly to raise interest rates if there are no clear signs of economic weakness in Japan.

China’s yuan climbed to its strongest level in more than three years early on Thursday, with the onshore currency touching 6.784 per dollar ahead of talks between Donald Trump and Chinese President Xi Jinping in Beijing. Investors have pushed the yuan higher in recent sessions in hopes of progress in trade discussions between the two countries.

Markets continued to react to stronger-than-expected US inflation data released this week. Producer prices in April posted their largest monthly increase in four years, following firm consumer inflation figures earlier in the week. The US Senate also confirmed Kevin Warsh as the next Federal Reserve chair, reinforcing expectations that US interest rates may stay higher for longer.

Spot gold traded little changed at $4,689 per ounce on Thursday morning as investors monitored developments from the Trump-Xi summit and the conflict involving Iran. Traders have sharply reduced expectations for US interest rate cuts this year, limiting appetite for the non-yielding metal despite ongoing geopolitical tensions.

Oil prices edged higher early on Thursday after falling sharply in the previous session. Brent crude rose to $105.9 a barrel, while US West Texas Intermediate crude climbed to $101.3. Attention remained focused on discussions between Washington and Beijing, with investors looking for signs of progress on the Iran conflict and the reopening of the Strait of Hormuz after months of severe disruption to global energy supplies.