Stocks advanced on optimism that artificial intelligence will continue to drive profits at megacap technology companies reporting earnings this week, and growing bets on a Federal Reserve interest-rate cut.
Asian shares rose 0.4%, with the tech sector outperforming. Japan and South Korea led the gains – yet, in both the Nikkei 225 and the Kospi, losers outnumbered winners.
Similarly, almost 400 components declined in the S&P 500 index, even though the gauge gained a modest 0.2% to close at an all-time high.
Asian chip-related stocks such as SK Hynix Inc. and Advantest Corp. jumped Wednesday after strong earnings. Nvidia Corp.’s shares surged more than 8% in Asian trading on the alternative platform Blue Ocean, signaling further gains when trading starts in New York.
That came after President Donald Trump said he plans to speak with Chinese leader Xi Jinping about the company’s Blackwell chip. Futures for the S&P 500 index rose 0.2%.
With five big tech companies — representing roughly a quarter of the US equity benchmark, set to report earnings between Wednesday and Thursday, investors will soon gauge whether the billions poured into computing infrastructure will keep flowing and ultimately deliver returns.
