U.S. stocks found significant tailwinds yesterday following an early announcement that Meta Platforms Inc. plans to purchase $100 billion worth of Advanced Micro Devices Inc. chips, sending AMD’s shares surging by 9%. The deal underscores the insatiable demand for hardware fueling the artificial intelligence revolution.
The positive momentum extended across the financial sector, where HSBC Holdings Plc saw its shares climb to a record high. The banking giant reported earnings that comfortably beat analyst expectations and subsequently raised its targets for the year. HSBC now anticipates a tangible return on equity (ROE) of at least 17% for the next three years. In a move to reward performance, the bank also boosted its bonus pool to $3.93 billion, its highest allocation in a decade.
In other corporate news, Danish pharmaceutical firm Novo Nordisk A/S disclosed plans to reduce prices for its leading drugs in the U.S., aiming to recapture market share in the highly competitive American healthcare sector.
Geopolitical tensions continued to play out on the global stage. In his State of the Union address, President Trump reiterated threats against Iran, even as negotiators from both countries are slated to meet in Geneva on Thursday, signaling a potential dual approach of diplomacy and assertive rhetoric.
Globally, European and Asian equities are trading higher today, both up an average of 0.7%, mirroring the U.S. market’s positive reaction to the tech and banking news. U.S. futures are pointing to a slightly positive open, suggesting continued optimism. In commodities, gold is up 0.4%, holding just below the $5,200 an ounce mark.