A wave of euphoria swept across global financial markets on Thursday, catapulting Britain's blue-chip FTSE 100 and America's benchmark S&P 500 to unprecedented heights. The catalyst? A blockbuster earnings report from the artificial intelligence powerhouse, Nvidia, which has single-handedly reignited investor passion for tech stocks.
Nvidia's AI Boom Sends Shockwaves Through Markets
The California-based chipmaker didn't just meet expectations; it obliterated them. Nvidia's staggering performance, driven by insatiable global demand for its AI processors, provided the jet fuel for a widespread market rally. This isn't merely a strong quarterly report; it's a testament to the transformative power of artificial intelligence on the global economy.
London Joins the Party: FTSE 100's Historic Climb
As the sun rose over London, the momentum from Wall Street's overnight session was palpable. The FTSE 100, a barometer of the UK's corporate health, surged past the 8,300 mark to close at a record 8,352. This wasn't a timid climb; it was a confident stride into new territory, with mining and energy giants like Anglo American and Shell leading the charge alongside a resurgent banking sector.
Wall Street's Record-Breaking Session
Across the pond, the excitement was even more fervent. The S&P 500 smashed through its own ceiling, closing above 5,300 for the first time in history. The tech-heavy Nasdaq Composite outperformed, soaring over 1.5% as investors scrambled for a piece of the AI action. Nvidia's shares themselves skyrocketed, adding a colossal $200 billion in market value in a single day—a figure larger than the entire value of most FTSE 100 companies.
What This Means for Investors
This market behaviour signals a profound shift in investor sentiment. The fear and uncertainty that characterised markets for much of the past year are being replaced by a robust optimism, particularly centred on the long-term viability of AI technology. Nvidia's earnings are being interpreted not as a peak, but as a preview of a new technological era.
For UK investors, the rally offers a welcome boost to pensions and investment portfolios heavily weighted in FTSE 100 stocks. The question on everyone's mind is whether this is a sustainable breakthrough or a spectacular, but short-lived, spike. For now, the bulls are firmly in control, riding a wave of technological promise that shows no immediate signs of cresting.
