Nvidia Falls, FTSE Futures Slip, Gold Near Record

Nvidia shares dropped 2.8% on Tuesday, dragging the Nasdaq 0.9% lower after US Federal Reserve Chair Jerome Powell reiterated caution on future rate cuts. The FTSE 100 closed 0.04% down while Kingfisher surged 14.6% after raising profit forecasts, and Serco climbed 4.7% on winning a US Air Force contract. Spot gold held close to a record high at $3,776 per ounce on Wednesday, while Brent crude steadied at $67.66 after US data showed falling oil inventories.

Equities

London’s FTSE 100 closed 0.04% lower on Tuesday, while the mid-cap FTSE 250 added 0.5%. Retail stocks were among the brighter spots. Kingfisher surged 14.6% after raising its full-year profit forecast on the back of stronger-than-expected first-half results. JD Sports Fashion gained 1.7%, Frasers advanced 3%, and Howden Joinery closed 2.3% higher.

Outsourcing firm Serco rose 4.7% after its unit won a $972 million contract to provide training and simulator services to the US Air Force. Smiths Group, which reported revenue and profit above estimates thanks to strong demand for its baggage-screening detectors and semiconductor-related products, touched an all-time high in early trading before closing 3.3% lower. Oxford BioMedica dropped 6.5% after posting half-year results, while GSK slipped 1.1% as attention turned to US government discussions around leucovorin production, a drug the company previously manufactured.

In the United States, stocks ended lower after three consecutive sessions of record highs. The S&P 500 lost 0.55% to 6,656.92, the Dow Jones Industrial Average fell 0.19% to 46,292.78, and the Nasdaq Composite dropped 0.95% to 22,573.47. Among the biggest movers, Nvidia declined 2.8% after rising in the prior session when it announced plans to invest up to $100 billion in OpenAI. Amazon, Microsoft and Apple also ended Tuesday lower, adding pressure on the technology-heavy Nasdaq.

Boeing helped cushion losses on the Dow, closing 2% higher after confirming an $8 billion order from Uzbekistan Airways. After the closing bell, Micron Technology shares gained 0.7% following an upbeat forecast alongside its earnings release, extending a 1.1% rise during the regular session.

Forex & Commodities

The US dollar steadied in early Asian trading, edging up to 97.36 on the dollar index after two sessions of losses that had taken it to a one-week low of 97.20 overnight. Against the yen, the dollar rose to 147.9, while sterling slipped to $1.351 and the euro eased to $1.180. The move followed Federal Reserve Chair Jerome Powell’s latest remarks late on Tuesday, where he emphasised the balance between persistent inflation and a weakening jobs market, leaving traders still pricing in two quarter-point rate cuts before year-end.

Gold prices edged higher this morning, with spot gold at $3,776 per ounce by 06:09 GMT, recovering from an earlier dip to $3,750 and close to Tuesday’s record of $3,791. Spot silver stood at $44.16, platinum at $1,483 and palladium at $1,235.

Oil prices were broadly unchanged on Wednesday. Brent crude rose to $67.66 a barrel and US West Texas Intermediate to $63.46. Both benchmarks had gained more than $1 on Tuesday as talks to resume pipeline exports from Iraq’s Kurdistan region stalled. Data from the American Petroleum Institute showed US crude inventories fell by 3.82 million barrels last week, while gasoline stocks declined and distillates rose. Reports also indicated Chevron will be able to export only about half of the 240,000 barrels per day produced with partners in Venezuela, limiting flows of heavier crude into the US.