The AEX price rebounded strongly on Thursday afternoon. Around 4:30 PM, the index is 0.95 percent higher at 942.45 points, largely erasing earlier losses today. Chip machine makers in particular are taking the lead after Nvidia’s impressive quarterly figures, which are giving the global technology sector a new impetus.
Chip sector shoots up after explosive figures from Nvidia
The strong rise of ASML, ASMI and Besi can be directly attributed to the better-than-expected results of Nvidia. The American AI figurehead reported quarterly revenue of $57 billion, well above market expectations, and also issued a strong outlook. CEO Jensen Huang called demand for Blackwell chips “off the charts.”
That optimism has an impact on European tech funds. The AEX benefits significantly from this: chip machine makers are among the biggest risers of the day and lift the AEX price towards the highest point of the afternoon.
Investors digest macro data: US unemployment at highest point since 2021
After this afternoon’s better-than-expected American jobs figures, sentiment on Wall Street is optimistic. The US economy created 119,000 jobs in September, above expectations, but unemployment rose to 4.4 percent, the highest level since October 2021.
According to market watcher The Kobeissi Letter, this is exactly the number that Fed Chairman Jerome Powell is paying attention to: “Powell is now looking more at unemployment than at headline job growth. Rising unemployment increases the chance of future interest rate cuts. Bad news is therefore good news for stocks.”
That effect is visible: futures on the Nasdaq shot up more than 2 percent.
Asia and Wall Street are on the rise, Europe is following suit
The market mood outside Europe is also very positive. The Nikkei already shot up 2.65 percent this morning to 49,824 points, helped by global optimism around AI chips. That sentiment continued in the United States, where trading is now fully open.
Prices are rising sharply on Wall Street. The Nasdaq is up around 2.2 percent, while the Dow Jones is almost 500 points higher. Nvidia immediately opens more than 4 percent in the green, after investors continue to process the chip giant’s strong quarterly figures and outlook. Nvidia’s higher price has ripple effects across the entire tech sector and is pushing the broader market up.
Volatility is also clearly decreasing. The VIX, also known as the trembling index, is down more than 15 percent at about 20 points, indicating waning fear among investors.
Crypto is reacting remarkably cautiously
Despite the strong recovery on the stock markets, crypto is lagging behind. Bitcoin drops slightly to $90,550, while Ether falls 1.6 percent to $2,984. Only a few altcoins show green, such as Solana and Dogecoin.
Investors appear to be more cautious in crypto, possibly because risk appetite is currently shifting mainly towards equities and AI-related companies.
AEX price remains sensitive to Nvidia effect
The market is now mainly looking at the further course of the AI rally. If Nvidia manages to maintain confidence, the AEX can also benefit from this in the coming days. The chip sector remains the determining factor for sentiment on the Damrak, and you notice this again today: higher by AI, higher by Nvidia.
Source: https://newsbit.nl/aex-veert-krachtig-op-dankzij-nvidia-rally-en-sterke-chipsector/
