Global Stocks Rebound Ahead of Fed Rate Decision
As the Lunar New Year celebrations continue, global stocks are experiencing a mixed bag of performances. In Europe, France’s CAC 40 dipped 0.4% to 7,867.03, while Germany’s DAX rose 0.4% to 21,516.18. Britain’s FTSE 100 edged up less than 0.1% to 21,516.18.
Tech Stocks Drive Wall Street Rebound
Meanwhile, on Wall Street, tech stocks led the charge, driving the S&P 500 up 0.9% to 6,067.70. The Dow Jones Industrial Average added 0.3% to 44,850.35, and the Nasdaq composite rallied 2% to 19,733.59. Nvidia, a key player in the AI frenzy, surged 8.8% after plummeting nearly 17% on Monday.
AI-Related Stocks Steady After DeepSeek Announcement
The recent announcement by Chinese company DeepSeek, which developed a large language model at a fraction of the cost of its U.S. rivals, has raised questions about the future of AI-related spending. However, AI-related stocks, including chip company Broadcom and Constellation Energy, held steady, with Broadcom rising 2.6% and Constellation Energy picking up 1.4%.
Fed Rate Decision Looms
As investors await the Federal Reserve’s rate decision, due later today, the spotlight remains on the central bank’s next move. The widespread expectation is that the Fed will leave the federal funds rate unchanged, marking the first meeting without a rate cut since September.
Asian Markets Rebound
In Asia, Japan’s Nikkei 225 index recovered from Tuesday’s losses, gaining 1% to 39,414.78. Australia’s S&P/ASX 200 rose 0.6% to 8,447.00, following data showing a 0.2% increase in the Consumer Price Index in the December 2024 quarter. India’s Sensex was up 0.9%, while the SET in Bangkok shed 0.1%.
Commodities and Currencies
In other market news, benchmark U.S. crude dropped 77 cents to $73.00 a barrel, while Brent crude sank 78 cents to $75.71 a barrel. The U.S. dollar fell to 155.35 Japanese yen from 155.53 yen, and the euro cost $1.0405, down from $1.0432.
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