Stocks Rise on AI Optimism, Gold Hits Record High Amid Rate-Cut Bets

Global stocks rose on Tuesday as optimism around artificial intelligence (AI) and technology investments pushed markets higher, while gold reached a record high amid expectations of U.S. interest rate cuts.

In Europe, the EURO STOXX 600 index increased by 0.4 percent, supported by gains in utility stocks. Germany’s DAX and France’s CAC 40 also climbed by 0.5 percent and 0.7 percent, respectively. Despite these gains, Dutch chip equipment maker ASML saw a small decline of 1.2 percent, which slightly limited overall market growth.

The United States continues to influence global markets strongly. On Monday, Nvidia announced plans to invest up to $100 billion in OpenAI, with the first delivery of data center equipment expected in the second half of 2026. This announcement fueled enthusiasm for technology stocks, drawing investments from momentum funds and options traders. Analysts at Deutsche Bank noted that the U.S. stock market gains are being largely driven by seven major tech companies, often referred to as the “Magnificent 7.” These companies continue to have an outsized impact on overall market performance.

Investors also sought safety in gold, which reached a record $3,759 per ounce. Gold has risen nearly 9 percent this month alone as market participants hedge against uncertainties in the stock market. S&P 500 futures were largely unchanged, while Nasdaq futures fell 0.3 percent after reaching new peaks overnight.

In Asia, technology and chip stocks were strong performers. South Korea’s stock index rose 0.5 percent, adding to a 9 percent gain for the month. Taiwan’s index has climbed almost 7 percent in September, while Japan’s Nikkei index remained closed for a holiday but has risen 6.5 percent so far this month. Chinese blue-chip stocks recovered from earlier losses and traded flat, as recent liquidity-driven gains slowed down. The MSCI Asia-Pacific index outside Japan showed a small increase but remains 5.5 percent higher for the month.

The market focus remains on the U.S. Federal Reserve, which recently cut interest rates. Futures suggest a 90 percent chance of another quarter-point rate cut in October and a 75 percent chance of easing in December. Despite this, Fed officials have shown mixed messages. New Fed Governor Stephen Miran called for sharp rate reductions, while other officials emphasized caution due to inflation risks.

In currency markets, the U.S. dollar showed a mixed performance, easing slightly after three days of gains. The euro was steady at $1.179, up from a low of $1.1726 on Monday. The Japanese yen slipped to 147.72 per dollar, while Sweden’s crown remained at 9.34 after a central bank interest rate cut to 1.75 percent.

Oil markets faced pressure from oversupply concerns, despite ongoing geopolitical tensions. Brent crude fell 0.4 percent to $66.27 per barrel, and U.S. crude eased 0.3 percent to $62.02 per barrel.

Overall, global markets are navigating a mix of optimism for technology and AI, the influence of central bank policies, and economic uncertainties. Investors remain cautious but continue to seek opportunities in technology, gold, and other key sectors.