Ibex 35 & Global Markets: Nvidia Calms AI Fears, US-Iran Talks in Focus
Investor concerns over Donald Trump’s tariffs appear to have taken a backseat as unease over the impact of artificial intelligence has subsided. Following gains on Wall Street overnight, European indices are trading without a clear trend, with attention focused on talks between the U.S. And Iran.
What is the Ibex 35 doing?
The Ibex 35 is down 0.4% after closing at new highs yesterday, above 18,461 points, rising 1.49%.
Which stocks are rising and falling the most?
The stocks that are rising the most:
- Indra: 17% after presenting results yesterday
- Rovi: 1.3%
- Solaria: 1%
The stocks that are falling the most:
- Fluidra: -5.3% after announcing its 2025 accounts
- Ferrovial: -1.6%
- Iberdrola: -1%
What are the other stock exchanges doing?
In Europe, the German Dax Xetra is trading with slight declines of 0.2%, while the FTSE 100 in London and the Cac in Paris are making slight gains.
In Asia, stock markets are mixed. The Nikkei in Japan rose 0.4% at close. In China, the Shanghai index closed flat, while the Hang Seng in Hong Kong lost 1.4%. Market sentiment has cooled after the post-Lunar New Year rally, and the market is now focused on the upcoming meetings of the National People’s Congress (NPC) and the National Committee of the Chinese People’s Political Consultative Conference (CPPCC) for new signals and policy guidelines.
On Wall Street, all three indices closed higher, with technology and financial stocks leading the gains. The Dow Jones Industrial Average rose 0.63%, the S&P 500 gained 0.81%, and the Nasdaq Composite added 1.3%. Positive results from Nvidia have calmed concerns about AI-driven disruption, but did not impress. In the after hours, the technology stock is up 3%.
Key developments of the day
- Yesterday it was learned that the CPI in the Eurozone fell two tenths in January and stood at 1.7%.
- Nvidia, the world’s largest company by market capitalization, reported a 73% increase in quarterly revenues to $68.1 billion, exceeding Wall Street’s estimate of $66.2 billion.
- Financial markets almost unanimously believe that U.S. Interest rates will not move at the next Federal Reserve meeting. Futures on federal funds estimate an implicit probability of 98% that the U.S. Central bank will keep rates unchanged at its next two-day meeting on March 18, with little change from the previous day, according to the CME Group’s FedWatch tool.
- Iran and the United States are scheduled to hold the latest round of talks in Geneva this Thursday, with the aim of resolving their long-standing nuclear dispute and avoiding new U.S. Attacks on Iran following a large-scale increase in its military presence.
What do analysts say?
“Artificial intelligence is the dominant theme and what is moving the market the most at the moment,” says Aaron Schaechterle, portfolio manager at Janus Henderson Investors in Denver. “On the positive side of the AI theme is capital investment in data centers and energy, and we don’t believe this will end anytime soon. The second theme in AI is the threat of displacement for established software companies.”
“The immediate market reaction is one of relief, translating into a moderate risk-on tone after the AI-driven volatility of recent weeks,” says Charu Chanana, chief investment strategist at Saxo, regarding the reaction of Asian stock markets to Nvidia’s results. “That said, this does not close the debate. Valuations remain high in some parts of the ecosystem, and the risks of disruption are becoming more visible as competition intensifies.”
What is the evolution of debt, currencies and commodities?
The euro is trading slightly higher at 1.1819 dollars.
Oil prices are rising moderately, as an increase in U.S. Crude oil inventories, much larger than expected, offsets the threat to oil supplies from a possible military conflict between the United States and Iran. Both countries are meeting in Geneva to try to avoid war. Brent, a European benchmark, is up 0.28% to $70.89 a barrel.