Nvidia jumps on Saudi deal, US gains accelerate [Video]

Ipek Ozkardeskaya Swissquote Bank Ltd

Trade news keeps getting better. Yesterday, it was the chipmakers’ turn to lead the rally, as Saudi Crown Prince Mohammad bin Salman pledged to spend as much as $1 trillion in commercial deals with the US, while Jensen Huang announced in Riyadh that the company will be selling chips to the Saudi Arabian AI company Humain for a massive data center project. Chip stocks led a broad-based US equity rally while gains in Europe remained limited.

On the macro side, investors also digested the latest US inflation report — which showed prices rising last month, but less than expected on a monthly basis. On a yearly basis, the headline rate eased to 2.3% — the lowest since spring 2021 — marking the third straight month of a softer-than-expected print. But the news were overshadowed by the tariff fears and didn’t improve Federal Reserve (Fed) expectations.

Across the channel, the surprise rise in the eurozone inflation softens the European Central Bank (ECB) doves’ hands, while in the UK, dovish voices are rising for the Bank of England (BoE) to cut – giving support to sterling against both the US dollar and the single currency.

Author

Ipek Ozkardeskaya

Swissquote Bank Ltd

Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.

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