By Vivek Kumar
Moving markets today: Asian shares follow Wall Street down, Walmart hits record high, HSBC’s full-year profit soars by 78%, oil prices rise; investors await Fed minutes, Nvidia earnings report
U.S. stocks fell, led by Nvidia’s worst day since October ahead of its earnings report. Asian stocks eased on reduced hopes of early Fed rate cuts. Nvidia became Wall Street’s most traded stock, overtaking Tesla. Walmart shares hit a record high on strong earnings results. Oil prices rose on output cut concerns and Red Sea attacks. Investors await Nvidia earnings and Fed minutes for rate outlook. Here are five key takeaways for your day.
HSBC’s full-year profit soars by 78%; Nvidia overtakes Tesla as most traded stock on Wall Street
HSBC Holdings announced a record 78% increase in full-year profit due to high interest rates. The bank, Europe’s largest with a market value of $160 billion, reported a pretax profit of $30.3 billion for 2023, up from $17.5 billion the previous year.
HSBC Holdings reported a 78% jump in full-year profit, a record high gain on high interest rates, but missed forecasts as it was hit by an impairment from its stake in a Chinese bank. Europe’s largest lender with a market value of $160 billion reported on Wednesday a pretax profit of $30.3 billion for 2023, versus $17.5 billion a year earlier.
Nvidia has overtaken Tesla as Wall Street’s most traded stock by value. This shift underscores Nvidia’s rising importance, notably as it becomes the third most valuable U.S. company. It also highlights the growing significance of AI-related investments for investors. Over the past 30 trading sessions, Nvidia’s daily trading volume averaged about $30 billion, surpassing Tesla’s $22 billion per day average during the same period, Reuters reported.
UK businesses upbeat about 2024 prospects: BCG
A recent Boston Consulting Group survey indicated that British businesses are more optimistic about profitability and economic growth compared to last year, with 47% of leaders expecting improved growth by year-end, up from 37%, reported by Reuters.
In contrast, a separate survey released Wednesday by XpertHR shows that British employers have scaled back annual pay settlements for staff in 2024. The median pay settlement dropped to 5.1% from 6% in the previous quarter, signalling potential easing of underlying inflation pressures for the Bank of England.
Oil prices gain traction as markets evaluate Red Sea attacks
Oil prices rose due to concerns over production cuts and shipping attacks in the Red Sea, despite reduced expectations of U.S. rate cuts. Brent crude futures climbed to $82.64 per barrel, while U.S. West Texas Intermediate crude futures reached $77.3. The U.S. vetoed a UN resolution on the Israel-Hamas conflict, opting to tie a ceasefire to the release of Israeli hostages by Hamas. Attacks on vessels in the Red Sea by Yemen’s Houthis raised concerns over freight flows.
Nvidia earnings and Fed minutes take centre stage today
Investors will be closely monitoring significant earnings reports, particularly Nvidia’s earnings, set to be unveiled later in the day. This announcement is expected to be critical in gauging both Nvidia’s performance and the broader trajectory of the artificial intelligence (AI) market, which has been a major driver of recent gains in U.S. stocks.
Additionally, traders will be examining the minutes from the Federal Reserve’s recent meeting to gain insights into the central bank’s potential timing for implementing its easing cycle. This will help market participants better understand the Fed’s monetary policy direction moving forward. There won’t be a significant amount of economic data for investors to monitor today.
Asian markets mirror Wall Street’s slide
The S&P 500 index fell by 0.60%, closing at 4,975.51 points, while the Nasdaq Composite experienced a 0.92% decline, settling at 15,630.78. The Dow Jones Industrial Average also saw a decrease of 0.17%, ending at 38,56.80 points. Shares of Nvidia, a chip designer, plummeted by 4.35%, marking its most substantial daily percentage drop since October 17. Walmart achieved a new peak, leading the Dow Industrials as the best performer. This came after the U.S. retail giant projected its sales for fiscal 2025 to surpass expectations set by Wall Street.
In Asia, Japanese stocks retreated despite strong export data from the automotive and semiconductor sectors. The Topix and the Nikkei 225 indexes slipped by 0.2% and 0.1% respectively during early trading. On the other hand, Hong Kong’s Hang Seng index rose by 1.7%, while mainland China’s CSI 300 edged up by 0.1%. South Korea’s Kospi index lost 0.2%. The dollar index gained 0.038% against a basket of currencies, reaching 104.08, nearing the three-month high of 104.97 achieved last week. Spot gold increased by 0.1% to $2,024.91 per ounce.
