Tech Stocks Surge Amid AI Optimism and Fed Rate Speculations

Global markets saw tech stock surges fueled by AI optimism and potential U.S. interest rate cuts. EURO STOXX 600 gained 0.4%, driven by utilities and German and French indexes. Nvidia's $100 billion investment in OpenAI contributed to U.S. records. Gold reached highs as investors hedged risks.

Tech stocks witnessed a significant surge on Tuesday, spurred by optimism around artificial intelligence and potential U.S. interest rate cuts. The EURO STOXX 600 experienced a 0.4% gain, largely driven by utilities, while German and French indexes rose by 0.5% and 0.7% respectively, reflecting the broader market enthusiasm.

In the U.S., Nvidia's announcement to invest $100 billion in OpenAI led Wall Street to new highs, indicating growing confidence in technology stocks. Deutsche Bank analysts highlighted the role of a select few tech giants in propelling market trends, reminiscent of patterns seen in previous years.

Meanwhile, gold prices reached record levels as investors sought safety amid market fluctuations. As focus remains on the U.S. Federal Reserve's upcoming statements regarding monetary policy, market participants are poised for further developments that could influence future economic conditions.

(With inputs from agencies.)