Global Stocks Rise Driven by Nvidia, as Investors Assess Rate Outlook

The possibility that interest rates might remain higher than expected tempered the optimism of some market participants.

Most global stock markets rose on Thursday after results from Nvidia, the artificial intelligence icon, sparked a surge in technology stocks. However, the possibility that interest rates might remain higher than expected tempered the optimism of some investors.

On Wall Street, the Nasdaq advanced 0.52%, and the S&P 500 rose 0.8%. In Europe, the EuroStoxx increased by 0.39%.

Nvidia’s shares climbed nearly 7% in pre-market trading. On Wednesday, after the market closed, the company projected quarterly revenues above estimates, which boosted shares of other AI-related companies.

In Asia, the Nikkei rose by 1.26%, while the Hang Seng closed with a 1.7% decline.

Meanwhile, the debate over a potential tax on the “super-rich” is advancing within the G20 and gaining support, although it still raises doubts in some of the world’s largest economies, according to economist Gabriel Zucman, one of the initiative’s proponents. During a visit to Brasilia. Since the first discussion on the matter last February in São Paulo, the issue has gained traction within the G20, with several countries backing the idea.

We are essentially seeing real momentum, with various countries expressing support. Brazil, of course, but now also France, South Africa, Spain, Colombia, and recently Belgium. The current U.S. administration under President Joe Biden and the Democratic Party might be favorable to such a tax, as they already have “similar” proposals in tax policy.