The European Central Bank opted to hold its benchmark interest rates at 2% at its meeting this week, marking the third consecutive decision to hold steady. The move reflects the ECB’s cautious stance amid a complex economic landscape. While inflation remains close to the 2% target and the eurozone economy continues to show resilience, buoyed by a strong labour market and solid private sector balance sheets, uncertainties persist due to global trade tensions and geopolitical instability. ECB President Christine Lagarde emphasised a data-dependent approach going forward, signalling that future rate decisions will hinge on evolving inflation dynamics and economic indicators.
Nvidia made headlines by becoming the world’s first company to reach a $5tn market valuation on Wednesday.
Meanwhile, Nvidia made headlines by becoming the world’s first company to reach a $5tn market valuation on Wednesday. The chipmaker’s meteoric rise has been fuelled by surging demand for its AI processors, which now underpin everything from data centres to autonomous vehicles. CEO Jensen Huang revealed a staggering $500bn backlog in AI chip orders and announced strategic investments in OpenAI, Uber, and Nokia. Investor sentiment was also boosted by the prospect of Nvidia gaining access to the Chinese market as President Trump met with China’s President Xi Jinping this week.
Alphabet reported a standout quarter with over £100bn in revenue, attributed to strong growth in cloud services and advertising
This week also saw a flurry of earnings reports from five of the “Magnificent Seven” – Alphabet, Microsoft, Meta, Apple, and Amazon. Results were mixed; Alphabet reported a standout quarter with over £100bn in revenue, attributed to strong growth in cloud services and advertising, with Microsoft also doing well off the back of its cloud business and investment in artificial intelligence (AI).
Our specialist's final thought
"Meta reported increased revenue but profits were hit by a significant rise in AI spending, causing its share price to drop over 8%, equating to the second largest drop in value in the company’s history of $160bn. Apple and Amazon both reported strong quarters, with their share prices jumping 13% and 3% respectively in afterhours trading."
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