The S&P 500 added 0.25% to set its second consecutive record close on Tuesday, boosted by a surge in Nvidia's shares. The Nasdaq booked marginal gains to mark its 7th straight record close, while the Dow added 56 points. Nvidia surged 3.5%, surpassing Microsoft and Apple as the most valuable public company. Other semiconductor stocks, including Qualcomm (2.2%), Taiwan Semiconductor (1.4%), and Micron Technology (3.8%) also gained. Investors were closely monitoring key economic data and comments from Fed officials to guide the economic outlook and potential policy changes. May's retail sales were weaker than expected, indicating a slowdown in consumer spending, while industrial production exceeded forecasts. New York Fed President Williams highlighted the economy's positive direction but did not specify a timeline for possible rate cuts, while Fed Governor Kugler sees rate cut coming later this year. US markets will be closed on Wednesday for the Juneteenth holiday.
The Nikkei 225 Index rose 0.6% to above 38,700 while the broader Topix Index gained 0.5% to 2,730 on Wednesday, rising for the second straight session as investors cheered data showing Japanese exports grew more than expected in May amid a weak yen and robust external demand. Meanwhile, a private survey showed that sentiment among large domestic manufacturers declined in June amid concerns about higher materials and import costs. Japanese shares also tracked gains on Wall Street overnight which was driven by a strong rally in Nvidia that made the chipmaker the world’s most valuable company. Strong gains were seen from index heavyweights such as SoftBank Group (3.2%), Mitsubishi Heavy Industries (1.6%), Advantest (3.5%), Keyence (2%) and Toyota Motor (1.1%). Meanwhile, SoftBank-backed Tempus AI tumbled for a second straight day and is now down about 17% from its $37 IPO price.
The DAX added 0.4% to around the 18130 level on Tuesday, extending Monday's gains, and tracking its European peers higher, as traders focus on key economic releases and important monetary policy decisions this week, while weighing the political turmoil in France. The ZEW economic sentiment for Germany disappointed and retail sales for the US came below forecasts while the Bank o England will decide on monetary policy later in the week. On the corporate front, Deutsche Boerse (1.8%), Qiagen NV (1.7%), QIAGEN (1.5%) and Siemens Energy (1.7%) were the top performers. On the other hand, Adidas was down 1.4%, a fourth consecutive day of losses.
The Shanghai Composite fell 0.2% to around 3,025 while the Shenzhen Component dropped 1% to 9,230 on Wednesday, giving back gains from the previous session as a lack of market-moving catalysts weighed on sentiment. Investors also look forward to the People’s Bank of China’s loan prime rate decisions on Thursday after the central bank decided to keep its medium-term lending facility rate unchanged at 2.5% earlier this week. Notable losses were seen from heavyweight firms such as Kweichow Moutai (-1.9%), Luxshare Precision (-0.9%), iSoftStone (-0.5%), BYD Company (-0.4%) and Suzhou Dongshan (-1.9%). Meanwhile, analysts warned that an intensifying competition among Chinese EV makers will squeeze profit margins, with EV retail volumes falling 3.1% year-on-year in May.
The stock market in India dropped 192 points or 0.2% to 77,109 in early deals on Wednesday, down for the first time in five as traders booked profit after a third consecutive day hitting a record high. The Nifty 50 fell below 23,500, mainly dragged by property oil & gas, consumer durables, metals, and auto. Investors digested speeches from Fed officials and US economic data after a slowdown in consumer spending that could guide the Fed's monetary policy decision path. Capping the decline was an upbeat session on Wall Street overnight after a sharp rally in Nvidia stocks. Solid domestic economic data and a statement from People's Bank of China Governor Pan Gongsheng that the central bank will stick to a supportive monetary policy stance also prevent the index moved into a deeper decline. Among early decliners were Titan (-2.7%), Adani Enterprises (-1.9%), Coal India (-1.8%), BPCL (-1.8%), and Hindalco (-1.7%).
