Stocks ride the AI rush and gold gains; Powell speech in focus

Global shares rose on Tuesday as AI optimism boosted tech stocks, while expectations of US interest rate cuts pushed gold to record highs and investors awaited remarks from Federal Reserve Chair Jerome Powell.

The MSCI world equity index, which tracks shares in 49 countries, edged up 0.1%, driven by advances in Europe and Asia.

Wall Street shares were set to hold on to gains after a tech-driven rally pushed indexes to record closing highs on Monday, for the third straight session.

Powell’s comments, due later in the day, could play a key role in shaping interest rate expectations at a time when investors are weighing mixed signals from the Fed, with some officials advocating gradual cuts to keep inflation in check.

US stock index futures were steady, with S&P 500 E-minis mostly unchanged and Nasdaq 100 E-minis making small gains of 0.3%.

On Monday, Nvidia announced it would invest up to $100 billion in OpenAI, with the first data centre gear to be delivered in the second half of 2026. The stock hit a record high, its gains underscoring its wider importance.

“It may not be an exaggeration to write that NVIDIA - the key supplier of capital goods for the AI investment cycle - is currently carrying the weight of US economic growth,” said George Saravelos, global head of FX research at Deutsche Bank.

Gold hit a record above $3,784 per ounce, and was nearly 10% higher for the month so far.

Chris Weston, head of research at broker Pepperstone, noted that investors were hedging their exposure to stocks by buying gold.

Eurozone bond yields, meanwhile, were little changed after the release of mixed business activity data from the bloc and heavy government bond issuance. Germany’s 10-year yield , the Eurozone benchmark, was little changed after the data at 2.745%, just below a two-week high of 2.762% reached on Monday.

The EURO STOXX 600, which has tended to lag in the rush to tech stocks, gained 0.5%, powered by utilities shares. German and French indexes climbed 0.3% and 0.7% respectively.

Earlier, MSCI’s broadest index of Asia-Pacific shares outside Japan closed up 0.1%, and was 5.5% higher for the month so far. South Korean stocks closed up 0.51%, while Chinese blue chips remained steady.

Global equities have been supported by expectations of further Fed rate cuts after it eased policy last week.

Futures suggest that there is around a 90% chance of a 0.25% US rate cut in October and a 75% probability in December.

Markets remain dovish despite mixed messaging from the Fed itself. New Fed Governor Stephen Miran called for sharp rate cuts on Monday, while three colleagues urged caution on inflation. In currencies, the dollar continued its recent seesaw pattern, easing overnight after three sessions of gains.

The euro was steady at $1.179, after bouncing from a $1.1726 low on Monday, while the dollar had faded to 147.72 yen from a high around 148.37.

Sweden’s crown gained 0.4% to 9.31 per dollar after the central bank cut interest rates to 1.75% and said rates were expected to remain on hold for some time.

Oil prices edged higher on Tuesday, even as investors weighed the global supply outlook after Iraq and Kurdish regional governments reached a preliminary agreement to restart an oil pipeline.

Oil gains as restart of Kurdistan oil exports stalls * Kurdistan oil export deal stalls over debt repayment assurances * Global oil market faces elevated supply, IEA says * US crude stocks expected to rise, gasoline inventories to fall (Updates prices) By Stephanie Kelly LONDON, Sept 23 (Reuters) - Oil prices rose on Tuesday after a deal to resume oil exports from Iraq’s Kurdistan stalled, pacifying some investor concerns that the restart would add to global oversupply fears.

Brent crude futures were up 72 cents, or 1.1%, to $67.29 a barrel at 1319 GMT, while US West Texas Intermediate crude was up 84 cents, or 1.4%, at $63.12 a barrel, both recouping modest earlier losses. Brent and WTI had fallen for the previous four sessions, dropping around 3%.

Investors on Tuesday were watching developments around the deal to restart oil exports from Iraq’s Kurdistan. Two oil producing firms asked for assurances their debts would be repaid, stalling the deal.

The deal between Iraq’s federal and Kurdish regional governments and oil firms is designed to lead to the resumption of about 230,000 barrels per day of oil exports from Kurdistan to the global market via Turkey. They have been suspended since March 2023.

Overall, the global oil market is bracing for elevated supply and slowing demand, hampered by the take-up of electric vehicles and economic pressures fuelled by US tariffs.

In its latest monthly report, the International Energy Agency said world oil supply would rise more rapidly this year and a surplus could expand in 2026 as OPEC+ members increase output and supply from outside the producer group grows.

Still, risks overhang the market as traders monitor the European Union’s consideration of stricter sanctions on Russian oil exports, as well as any escalation of geopolitical tensions in the Middle East.

Agencies