Dollar Climbs as Oil Surge Pressures Global Equities

The US dollar strengthened as Treasury yields reached fresh highs and investors increased expectations of another Federal Reserve rate rise this year. Oil prices climbed further, with Brent crude trading above $107 a barrel amid continued disruption around the Strait of Hormuz and ongoing tensions involving Iran. Gold fell to a one-week low as higher yields reduced demand for bullion, while sterling weakened to $1.335 following renewed political uncertainty in the UK. Nvidia advanced after CEO Jensen Huang joined Donald Trump during talks in Beijing, although Asian equity markets turned sharply lower.

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 FTSE 100 closed 0.46% higher on Thursday, while the FTSE 250 gained 1.33% after stronger-than-expected UK economic growth data for the first quarter eased some concerns about the domestic outlook. Investors also continued to monitor political developments after the resignation of Health Secretary Wes Streeting increased pressure on Prime Minister Keir Starmer following weak local election results for Labour.

Legal & General rose 6.16% by the close after reports suggested takeover interest was building around the insurer and asset manager. UK-listed automotive shares also moved higher, with the sector advancing 3.23% during Thursday trading.

3i Group fell 12.76% and touched its lowest level since 2023 after investors reacted to signs of slowing momentum at discount retailer Action, which remains the investment firm’s largest holding. Banking shares also weakened, pulling the investment banking index around 3% lower.

Economists said recent UK growth figures may have been supported by stockpiling linked to supply chain disruption in the Middle East. Markets are continuing to price in further Bank of England interest rate increases later this year, although some analysts warned economic momentum may weaken during the second half of 2026.

In the United States, the S&P 500 and Nasdaq closed at fresh record highs on Thursday, while the Dow Jones Industrial Average finished just below its all-time peak. The Dow rose 0.75%, the S&P 500 added 0.77% and the Nasdaq gained 0.88%.

Nvidia climbed 4.4% after reports that the US government approved sales of its H200 artificial intelligence chips to Chinese customers. Chief executive Jensen Huang also joined Donald Trump during high-level meetings with Chinese President Xi Jinping in Beijing.

Cisco Systems surged 13.4% to a record high after raising its annual revenue forecast and announcing plans to cut almost 4,000 jobs as part of a restructuring programme. Tech infrastructure company Nebius Group added 6.7% after Northland Capital increased its target price on the shares.

Boeing fell 4.7% despite comments from Donald Trump that China had agreed to purchase 200 aircraft from the company. Semiconductor stocks were mixed, with Qualcomm, Intel, Sandisk and Micron all closing lower despite broader strength in technology shares.

Chipmaker Cerebras jumped 68.2% during its Wall Street debut after opening well above its initial public offering price.