Global stock markets traded in mixed directions on Thursday as investors assessed corporate earnings, with chip giant Nvidia’s results taking centre stage despite a lacklustre immediate reaction. The technology leader reported record quarterly revenue that exceeded forecasts, yet shares fell in after-hours and early New York trading. Analysts noted that even results beating expectations by billions of dollars failed to spark optimism, reflecting heightened and arguably unsustainable hopes for artificial intelligence-related growth.
The market response underscores a turning point in investor sentiment toward AI-focused firms. “It says a lot when a stock market darling beating revenue forecasts by billions of dollars can no longer muster a positive share price reaction,” said Dan Coatsworth, head of markets at AJ Bell. He added that the “mood music is changing” on Nvidia, which last year became the first company to surpass $5 trillion in market capitalisation. Trade Nation analyst David Morrison pointed out that shares had already risen in anticipation, and the actual report “wasn’t the ‘stellar’ results with which the market has become accustomed,” leaving investors questioning the near-term trajectory.
Wall Street opened mixed, with the Dow Jones Industrial Average gaining 0.4 per cent, the S&P 500 flat, and the tech-heavy Nasdaq Composite down 0.2 per cent. In Europe, major indices advanced. London’s FTSE 100 received a boost from a six per cent jump in Rolls-Royce shares after the British engineering group raised its guidance, announced a share buyback, and reported soaring annual profits. Paris’s CAC 40 crossed 8,600 for the first time, and Frankfurt’s DAX also rose.
Gains were led by Stellantis, which climbed six per cent despite posting a net loss of €22.3 billion ($26.3 billion) for 2024, largely due to asset write-downs as the automaker pivots away from electric vehicles.
In Asia, the Tokyo Nikkei 225 hit a fresh record, while Hong Kong’s Hang Seng fell 1.4 per cent and Shanghai was flat. The rally in Asian technology firms continued, with Seoul’s KOSPI surging over three per cent to a new peak, driven by chipmakers Samsung and SK Hynix. The index is now up nearly 50 per cent year-to-date. Analysts attribute the regional surge to a shift in AI investment focus from application-based “downstream” companies toward hardware and semiconductor “upstream” players, amid concerns about the timeline for returns on massive AI investments and potential technology disruptions.
Oil prices declined, with West Texas Intermediate dropping 1.9 per cent to $64.21 per barrel and Brent crude falling 1.2 per cent to $69.84. The move followed news that Iran and the United States began a new round of indirect talks on Tehran’s nuclear programme, raising hopes for de-escalation.
In currency markets, the Japanese yen recovered slightly against the dollar after reports that Prime Minister Shigeru Ishiba nominated policy-dove academics to the Bank of Japan board, dampening expectations for further interest rate hikes.
The day’s movements highlight a broadening reassessment of AI enthusiasm and its impact on equity valuations, while geopolitical developments offer temporary support to oil markets. Investors are now scrutinising earnings and central bank signals for direction in an increasingly cautious climate for high-growth technology stocks.
