Today Fundamental Analysis: Global indices reach record highs, driven by a rally in tech stocks

U.S. stock futures were mostly flat on Wednesday after the S&P 500 and Nasdaq reached new record highs, driven by strong gains in technology stocks. The rally was led by Micron Technology, which surged 19% and surpassed a $1 trillion market value for the first time amid strong AI-driven demand.

Investor sentiment was also supported by optimism over ongoing U.S.-Iran negotiations despite recent U.S. military strikes in Iran.

In China, industrial profits rose sharply by 24.7% year-over-year in April, marking the fastest growth since November 2023.

Additionally, Asia-Pacific markets advanced on Wednesday, with Japan’s Nikkei 225 and South Korea’s Kospi reaching fresh highs. Japan’s Nikkei gained 1.49%, while South Korea’s Kospi surged 4.84%, supported by a 6% jump in Samsung Electronics shares after workers approved a wage agreement that avoided a potential strike.

In the commodities market, Gold prices remained range-bound around the $4,500 level on Wednesday as a stronger safe-haven US Dollar and rising expectations for hawkish central bank policies pressured the metal.

Concerns over higher oil prices and inflation, driven by disruptions around the Strait of Hormuz, also increased expectations for tighter monetary policy from major central banks, including the Federal Reserve. Investors are now focused on upcoming US PCE inflation and GDP data for further direction, while the overall backdrop currently favors downside pressure on gold.

AUTHOR

Ghassan Albohtori 

Financial Market Analyst - STARTRADER

Ghassan Albohtori is a financial market analyst with experience in macroeconomics, investing, and currency trading. He conducts in-depth market research covering fundamental and technical analysis of different instruments to find major changes in market trends. Mr. Ghassan's main focus is the effects of economic data on different asset classes and how this affects prices.

Risk Disclaimer: This material is provided for informational purposes only and does not constitute a recommendation or investment advice. Trading financial instruments on margin involves substantial risk and may not be appropriate for all investors.