Japan’s benchmark stock index achieved a historic milestone Wednesday, climbing above 68,000 points for the first time as American markets continued setting new records.
The U.S. dollar momentarily climbed past 160 Japanese yen before retreating slightly. Crude oil values increased by more than $1 per barrel.
Global stock market surges have been fueled by investor enthusiasm for technology companies benefiting from the artificial intelligence revolution.
By mid-morning trading, the Nikkei 225 had risen 2.2% to reach 68,172.89. Computer chip equipment manufacturer Tokyo Electron saw shares jump 10.1%, while chip testing equipment producer Advantest gained 4.6%.
Hong Kong’s Hang Seng declined 0.9% to 25,804.51, and the Shanghai Composite index dropped 0.2% to 4,068.77.
Australia’s S&P/ASX 200 increased 0.3% to 8,747.10, while Taiwan’s Taiex climbed 1.8%.
South Korean markets remained closed for a holiday.
Tuesday’s trading session saw artificial intelligence beneficiaries continue their upward momentum, propelling U.S. stock markets to fresh record highs.
The S&P 500 gained 0.1% to close at 7,609.78 following a day of mixed trading. The Dow Jones Industrial Average rose 0.4% to 51,307.79, while the Nasdaq composite increased marginally by less than 0.1% to 27,093.90. Each index established new all-time peaks.
Economic data revealed that U.S. companies posted significantly more job openings at April’s conclusion than forecasters had anticipated, suggesting ongoing strength in the nation’s employment sector.
Hewlett Packard Enterprise shares skyrocketed 19.5% following quarterly earnings that far exceeded analyst projections. The company attributed strong performance to customer demand for artificial intelligence infrastructure.
Marvell Technology experienced its strongest trading day since going public in 2000, jumping 32.5% after Nvidia’s CEO, Jensen Huang, indicated at a Taiwan conference that Marvell could become “the next trillion-dollar company.” Micron Technology was the most recent addition to the exclusive club of trillion-dollar corporations, also benefiting from AI momentum. Nvidia, which declined 0.7%, has reached a market value exceeding $5 trillion.
Generac shares advanced 5.7% after announcing an agreement to supply backup power systems to an unidentified “leading hyperscale data center operator.”
These “hyperscalers” are investing enormous sums to construct massive AI data facilities, driving what supporters view as the next major transformation of the worldwide economy.
Alphabet represents one such hyperscaler. Google’s parent company announced plans to raise $80 billion through stock sales to fund its investments, though shares fell 3.9% Tuesday.
The corporation expects to spend up to $190 billion on equipment and other investments this year. This amount exceeds The Walt Disney Co.’s entire market value, and Alphabet projects investment spending will “significantly increase” next year.
These massive expenditures raise questions about whether AI can generate sufficient profits and productivity improvements to justify the investment levels, or if an AI investment bubble is forming.
Market analysts have suggested the broader U.S. stock market might face a slowdown after the S&P 500’s unprecedented nine consecutive weekly gains, its longest winning streak since 2023.
The rally has been primarily driven by robust corporate earnings reports and optimism that the United States and Iran might negotiate an agreement to reopen the Strait of Hormuz. Such a deal would restore normal oil flows from the Persian Gulf and potentially reduce prices.
Oil markets resumed their upward trend. Brent crude oil, the global benchmark, rose $1.03 to $97.03 per barrel early Wednesday. Prices remain well above pre-war levels of approximately $70.
U.S. benchmark crude oil increased $1.10 to $94.86 per barrel.
Following a brief peak at 160.44 yen, the U.S. dollar retreated to 159.86 yen from Tuesday’s close of 159.92. The euro slipped to $1.1631 from $1.1632.
