Stocks Make Modest Gains as Nvidia's Surge Cools, Yields Decline

Global stock markets saw a slight increase, reaching new highs driven by excitement over Nvidia’s impressive earnings, despite a general caution over stretched valuations. Nvidia’s market value briefly surpassed $2 trillion, highlighting the surge in interest around AI technologies. However, concerns about high valuations and the Federal Reserve’s interest rate plans have tempered gains. U.S. services sector growth and job market strength suggest the Fed may maintain higher rates longer than expected, challenging earlier predictions of rate cuts. European stocks also hit new highs, with the STOXX 600 and major indices in France and Germany setting records. Meanwhile, the dollar faced its first weekly drop in 2024, and Treasury yields declined, reflecting mixed expectations on future Fed actions and global economic outlooks.