Nvidia's Soaring Valuations Spark Market Concerns Amid Record Highs

Global equity markets dipped from record highs as concerns over the valuations of leading tech firms, like Nvidia, emerged. Investors grappled with fluctuating stock performances, AI uncertainties, and geopolitical tensions that influenced shifts in treasury, gold, and currency values.

Global equity markets retreated from their peak amid rising concerns about the lofty valuations of major tech stocks, particularly following Nvidia's robust quarterly results. The AI chipmaker's stock dropped 4.4% despite a forecasted first-quarter revenue of $78 billion, causing ripples on Wall Street and European exchanges.

Capital market nervousness extended to the STOXX 600 index, slightly retreating after reaching new highs, while MSCI's All Country World Index also recorded a decline. The anticipation of AI's future impact, as noted by Ocean Park Asset Management's James St. Aubin, adds tension. This uncertainty resulted in losses for U.S. tech giants like Alphabet, Apple, and Amazon.

In parallel, geopolitical developments such as Iran-U.S. nuclear discussions affected oil prices, while safe-haven assets like treasury bonds and gold saw increased bids. Forex markets also responded, with movements in major currencies against the dollar, amidst a backdrop of the Bank of Japan's executive board changes.

(With inputs from agencies.)