📆 Thursday, February 22
► Global stocks surged, led by Nvidia's sales forecast, boosting investor confidence in generative AI's growth.
► Europe's Stoxx 600 index hit a new peak, with the tech sector up by more than 3%. Germany's Composite PMI fell to 46.10, with manufacturing and services PMI also seeing declines – more weak German data. In corporate news, Nestle predicts a slowdown in revenue growth due to decreased inflation, and Mercedes-Benz expects lower returns amid a global economic slowdown. Investors await the release of Eurozone inflation data came in with no surprise (2.8% down from 2.9% in December) confirming flash readings – but show that disinflation continues in the Eurozone. Money markets anticipate fewer ECB rate cuts this year.
► In the US, the Nasdaq 100 rose close to 2% during after hours trading, and the S&P 500 increased by more 1%, influenced entirely by Nvidia's very impressive earnings report. Nvidia's shares soared up to 13% after-hours, predicting Q1 revenue of $24 billion, surpassing estimates. The new euphoria about Nvidia's earnings and AI overshadowed the Fed's hawkish minutes from the latest meeting. US Treasuries steadied and the USD index fell slightly following the improved risk sentiment. Fed officials Lisa Cook and Neel Kashkari's speeches, along with jobs and home sales data, are anticipated later today.
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