(Paris) The surge in the stock market of the giant of graphics cards Nvidia, after its quarterly results, supports the technology sector, but the rest of the stock markets remain nervous in front of the many uncertainties on the global growth and the debt in the United States.
On Wall Street, the NASDAQ was up 1.34% around 10:05 a.m. EST, buoyed by a 22.76% jump from Nvidia.
Current 6th most valued company in the world, with more than 750 billion dollars in capitalization, the specialist in graphics cards forecasts turnover for the second quarter of 11 billion dollars, which would represent a jump of 64% compared to the same period last year.
Investors welcome these prospects, stimulated by the race for artificial intelligence. Since the beginning of the year, Nvidia has already seen its price double and serves as a locomotive for the NASDAQ, which is progressing by more than 20%.
Nvidia could be “the big winner of the AI craze, as its chips are well-suited for training AI algorithms” which require a lot of data, points out Ipek Ozkardeskaya, analyst at Swissquote Bank.
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The financial centers in Europe are moving slightly lower, but have recovered a little from the low of the morning: Paris fell by 0.22%, London by 0.66% and Milan by 0.33% around 10:05 a.m. (Eastern time).
Frankfurt fell slightly by 0.09%, as Germany entered a technical recession in the first quarter of 2023, with a second consecutive drop in its gross domestic product (-0.3%).
In the United States, first-quarter GDP growth was revised up on Thursday to 1.3% annualized, a slowdown from the previous quarter.
The rest of the news is bleak. About a week before a possible US default, rating agency Fitch placed the US AAA rating “on review”.
Added to these “endless questions” about debt is “uncertainty about the degree of additional monetary tightening that might be appropriate” in the coming months by the U.S. central bank, notes John Plassard, investment specialist at Mirabaud, after the publication of the minutes of the last Fed meeting.
Until recently, the equity market was hoping for a monetary turnaround and several declines by the end of the year.
In Europe, while inflation is expected to “decline rapidly”, according to European Central Bank (ECB) Vice President Luis De Guindos, core inflation, which excludes more volatile prices, will not. raw materials and food, because “the drivers of inflation are changing”, he told the European Parliament.
“We pay much more attention to the evolution of wages and the evolution of profit margins,” he also said.
For the Governor of the Banque de France, the important thing now is to determine “the duration” during which the rates will be kept at a high level by the (ECB).
On the bond market, short and medium-term rates are rising in Europe. The German two-year debt rate was 2.86% around 10 a.m. EST, down from 2.83% at the previous day’s close.
Nvidia’s findings were benefiting the tech industry everywhere.
On Wall Street, AMD was up 7.91%, Micron 3.72% and Broadcom 2.02%.
Microsoft, which relies on artificial intelligence, also rose by 2.20%.
In Europe, ASML took 4.75% and Soitec 8.86%.
Oil gives up some ground: the barrel of Brent North Sea loses 2.48% to 76.42 dollars and the barrel of American WTI 2.81% to 72.22 dollars around 10 a.m. (Eastern time). ).
The price of gas fell by 5.69% to 26.21 euros per megawatt hour for the benchmark European contract.
The euro remains weak (-0.34%) against the dollar at 1.0713 dollars per euro.
Bitcoin fell 0.24% to $26,330.
