Stock exchanges, confidence on Trump-Xi, Milan (+1.1%) from record high over 50,000 points
The tech sector is still in the spotlight after a new record high on the Nasdaq. Eyes on the Beijing talks, the war in Iran remains in the background, oil on the upswing. Stellantis and Stellantis do well in Milan, A2a flares up after accounts
by Chiara Di Michele and Ivan Torneo
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(Il Sole 24 Ore Radiocor) - The Trump-Xi summit instilled a climate of greater confidence in the stock markets, which continued to make new records while keeping in the background the risks linked to the prolonging conflict between the US, Israel and Iran and the closure of the Strait of Hormuz. Piazza Affari closes one step away from the historical record of 6 March 2000 (50,109 points) at the height of the dot-com bubble. In fact, the index marked a +1.15% at 50,050
According to the White House, US President Donald Trump and Chinese counterpart Xi Jinping agreed on the need to keep the Strait of Hormuz open and on the fact that Iran cannot go nuclear. Beijing, however, is holding the line on Taiwan, saying that if not handled well, the issue could lead to conflict.
The optimism about the prospects for artificial intelligence (on the eve of a new record for Nasdaq and S&P on Wall Street in the wake of the tech sector, with Nvidia continuing to update its highs and adding 100 billion in capitalisation in one session) pushes the stock markets up and puts the risk of an interest rate hike on the back burner, at least for the moment because of the energy shock. In the US, after the inflation numbers, the producer price reading also showed the effects of higher crude oil prices. Other indications came from import prices, which rose more than expected in April (+1.9% versus +0.9% expected). At this point, the market not only expects no cuts by the Fed this year, but is starting to bet on possible increases in the cost of money.
Markets look to Beijing and Taiwan's future
Investors are focused on the news coming from the summit between US President Donald Trump and Chinese leader Xi Jinping, with the tycoon inviting China's president to the US on 24 September on the eve of the mid-term elections. At stake are not only tariffs and trade relations between the two superpowers, but also positions on the conflict with Iran andthe thorny topic of Taiwan, which in turn brings the semiconductor issue back to the fore. The island, according to industry estimates, produces around 90% of the world's most sophisticated semiconductors, with the colossus Tsmc based there. It is no coincidence that Trump is accompanied by a large delegation of ceos with number ones from the major AI giants, including Elon Musk and Tim Cook, and optimism about the industry on the eve of the event was heightened by the news that Nvidia's CEO, Jensen Huang, also joined the US president on his trip to China.
On Wall Street the Dow Jones returns to 50,000 points with Cisco rally
Wall Street's major indices moved higher, with the Dow Jones back above 50,000 points and the S&P 500 and Nasdaq Composite immediately updating their intraday highs, after a solid quarterly report from Cisco Systems. The software giant posted third quarter results and forecasts that exceeded market expectations and announced nearly 4,000 job cuts. Together with Cisco, Amazon and Nvidia are supporting the Dow Jones recovery: Cisco and Amazon are up 30% in the last two months, Nvidia has gained 25%. Honda Motor runs: the automotive giant posted its first annual loss in almost 70 years due to costs of USD 9 billion for the restructuring of its electric vehicle business. However, forecasts for the full year 2027 came in above expectations and the dividend was maintained.
