Global markets moved broadly higher, buoyed by optimism surrounding artificial intelligence and a rally in technology stocks, as all eyes turned to the US Federal Reserve's interest rate announcement. The Fed is widely expected to hold its benchmark rate steady, while analysts say the key focus will be on guidance regarding future monetary policy in light of persistent inflationary pressures.
On the technology front, reports that Nvidia plans to invest 3 billion dollars in Meta fueled demand for tech shares. On Wall Street, Nvidia rose 1 percent, Advanced Micro Devices gained 5.5 percent and Micron Technology climbed 2.8 percent in the previous session. Investors also awaited the after-hours earnings reports from Alphabet and Microsoft, seeking evidence that heavy spending on AI infrastructure is translating into sustained revenue growth.
Geopolitical developments added to market volatility. Reports that Iran-backed Houthi forces in Yemen had attacked a refinery in Saudi Arabia stoked supply concerns, pushing December-dated Brent crude up 1.4 percent to 115.5 dollars per barrel. The absence of concrete progress in US-Iran talks further supported oil prices. Rising crude prices amplified inflation worries, pushing the US 10-year Treasury yield back above 5 percent, while the dollar index climbed to 102.4, its highest level since October 14. Gold slipped 0.7 percent to trade at 4,033 dollars per ounce.
European bourses delivered a mixed performance. Germany's DAX 40 gained 0.71 percent, France's CAC 40 rose 0.51 percent and Italy's FTSE MIB added 0.9 percent, while the UK's FTSE 100 fell 0.75 percent. HSBC shares dropped 5.4 percent despite reporting a 32 percent annual rise in pre-tax profit to 9.6 billion dollars for the third quarter, after the bank declined to upgrade its full-year guidance. Mercedes-Benz shed 3.9 percent after lowering its 2026 profit outlook amid intensifying competition from Chinese automakers.
Asian markets extended Wall Street's tech-driven gains. South Korea's SK Hynix surged 10.1 percent after reporting a 632 percent jump in operating profit to 83.3 trillion won, a result analysts said confirmed enduring demand for AI-related products. Samsung Electronics also climbed 8.3 percent. Japan's Nikkei 225 rose 1.2 percent, South Korea's Kospi gained 6.3 percent, China's Shanghai Composite added 0.7 percent and Hong Kong's Hang Seng edged up 0.4 percent. Attention will next shift to the European Central Bank, which is expected to hold rates at its meeting tomorrow before potentially raising them again in December.
