Wall Street continued its upward momentum Wednesday, marking the second straight day of solid gains as technology stocks led another market rally and investors showed renewed interest in assets that had recently fallen out of favor, including precious metals and digital currencies.
The market’s attention focused heavily on quarterly earnings from Nvidia, the world’s most valuable company with a market capitalization exceeding $4 trillion. The chip manufacturer’s financial reports have become as closely watched as major economic indicators like employment and inflation data.
Nvidia exceeded expectations once again, reporting fourth-quarter revenue of $68.13 billion that surpassed analyst predictions. The company projected revenue would climb to $78 billion in the current quarter, well above the average analyst forecast of $72.6 billion. Nvidia shares jumped 4% in after-hours trading following the announcement.
The technology sector as a whole gained 1.8%, while other standout performers included Coinbase, which surged 13.5%, and Super Micro Computer, up 8%. However, Lowe’s declined 5.5% after issuing cautious guidance, pulling the real estate sector down 0.7%.
International markets also showed strength, with Taiwan, South Korea, Brazil, and Japan’s Nikkei all reaching new record highs. South Korean stocks have been particularly impressive this year, climbing 45% year-to-date, while broader emerging market indices have posted double-digit gains.
Currency markets saw notable movement as well. China’s onshore yuan extended its winning streak to nine consecutive days, its longest rally since 2010. The Korean won emerged as the top-performing major currency, gaining 1%, while the dollar weakened and the Japanese yen continued to struggle among major currencies. Bitcoin added 8% to its value.
In commodities, oil prices edged slightly higher, while precious metals showed strong performance with silver climbing 4% and platinum advancing 6%.
Meanwhile, Japan made surprising policy moves as the government nominated two academic economists to the Bank of Japan’s board, both considered policy doves who favor accommodative monetary conditions. This development may disappoint those expecting the central bank to continue normalizing its ultra-loose monetary policy.
Looking ahead, several key events could influence market direction, including South Korea’s interest rate decision, speeches from European Central Bank President Christine Lagarde and Federal Reserve Vice Chair Michelle Bowman, and the release of U.S. weekly unemployment claims data.
The current market environment reflects what Goldman Sachs describes as the loosest financial conditions in emerging markets in four years, creating what analysts call a self-reinforcing cycle of strong domestic equity performance, dollar weakness, and stable Treasury markets.
