Nvidia Surge Lifts Wall Street as Dollar Strengthens

Nvidia rose 5% on Tuesday after announcing plans to build seven AI supercomputers for the US Department of Energy, helping the S&P 500 and Nasdaq close at record highs. The dollar strengthened to 98.899 against major peers after US President Donald Trump said he expected to reach a “great deal” with China ahead of a meeting with President Xi Jinping, while sterling slipped to $1.3238. Spot gold fell to $3,964 per ounce and Brent crude rose to $64.62 a barrel following a sharp decline in US inventories and optimism over US-China trade progress.

Equities

The FTSE 100 closed at a record high on Tuesday, rising 0.4% to 9,696.74 points, supported by strong gains in banking and telecoms stocks. The mid-cap FTSE 250 slipped 0.1% as investors looked ahead to major corporate and central bank announcements later in the week.

HSBC rose 4.6%, its largest daily gain in six months, after the bank upgraded its income outlook and confirmed plans to shift into growth mode through its takeover of Hang Seng Bank in Hong Kong. The update came despite a sharp drop in third-quarter profit following $1.4 billion in legal charges. Management said loan losses remained limited and that the lender’s balance sheet was healthy enough to support further shareholder payouts. AJ Bell’s Russ Mould said the results showed room for additional cash returns provided economic conditions remain stable.

Airtel Africa jumped 16.4% to a record high after reporting a rise in half-year revenue and announcing an interim dividend. The company said stronger demand for mobile data across its key African markets underpinned growth. Spirax Group added 1.2% after UBS raised its rating from “neutral” to “buy” and lifted its target price from 7,500 pence to 10,500 pence, citing improved sales momentum and operational efficiency.

On Wall Street, the main US indices extended their record-setting run on Tuesday. The Dow Jones Industrial Average rose 0.34% to 47,706.37, the S&P 500 gained 0.23% to 6,890.89, and the Nasdaq Composite climbed 0.8% to 23,827.49.

Nvidia closed up 5% after chief executive Jensen Huang said the company would build seven artificial intelligence supercomputers for the US Department of Energy. Huang added that Nvidia has secured $500 billion in AI chip bookings, lifting its market capitalisation by over $230 billion and putting it close to the $5 trillion mark.

Microsoft advanced 2% after reaching a deal that allows OpenAI to restructure as a public benefit corporation while maintaining Microsoft’s 27% ownership stake in the ChatGPT developer. Apple rose 0.1% after briefly crossing a $4 trillion valuation for the first time, while investors await third-quarter results from Apple, Microsoft, Alphabet, Amazon and Meta later this week.

United Parcel Service gained 8% after posting stronger-than-expected quarterly results, with management saying its major restructuring plan is on track to deliver $3.5 billion in cost savings next year. After the closing bell, Visa’s shares edged higher in after-hours trading after reporting a rise in quarterly profit and strong transaction volumes, having ended the regular session down 0.3%. Investors now turn to Wednesday’s Federal Reserve meeting, where a 25-basis-point rate cut is widely expected.

Forex & Commodities

The dollar strengthened, rising from a one-week low after renewed optimism over a potential US-China trade deal. In morning trading, the dollar index stood at 98.899. The euro slipped to $1.1631 and sterling eased to $1.3238, while the dollar edged higher against the yen at ¥152.28. US President Donald Trump said in a speech in South Korea that he expected to reach a “great deal” with Chinese President Xi Jinping, who he is due to meet on Thursday. Reports that China’s state-owned COFCO purchased three US soybean cargoes this week also supported sentiment.

The Australian dollar rose to $0.6606 after stronger-than-expected inflation data reduced expectations of an imminent rate cut by the Reserve Bank of Australia. Economists at Westpac said a reduction is unlikely before February 2026 following the latest quarterly consumer price figures. Traders also kept a close watch on the US Federal Reserve, which is expected to cut interest rates by a quarter point later today, while the European Central Bank and Bank of Japan are both expected to hold steady at their meetings on Thursday.

Spot gold fell for a second session, dropping to $3,964 per ounce on Tuesday — its lowest level in three weeks — as progress on trade talks between the United States and China reduced demand for safe-haven assets. Analysts at Bank of America said the metal’s rally this year had left it overbought, with the bank maintaining a fourth-quarter forecast of $3,800.

Oil prices rose in early Wednesday trading. Brent crude was up at $64.62 a barrel and US West Texas Intermediate at $60.35 after data from the American Petroleum Institute showed larger-than-expected declines in US crude, gasoline and distillate inventories. The increase followed confirmation that Presidents Trump and Xi will meet in Busan on Thursday and after reports that OPEC+ is considering a modest production rise in December.