A gauge of regional stocks edged 0.1% higher after US benchmarks closed at record highs. A strong outlook by Cisco Systems Inc. lifted Nasdaq 100 futures contracts 0.5%, reinforcing the bullish narrative for the technology sector. The company’s shares surged 18% in extended trading.
A drop in oil also helped sentiment on Wednesday, while a $25 billion sale of 30-year bonds saw investors snagging 5% yields on those maturities for the first time since 2007. An index of the dollar was fractionally higher Wednesday, while gold fell for a second session. Investors fled Treasuries after back-to-back US inflation reports this week showed mounting price pressures.US stocks have pushed to record highs, supported by strong corporate earnings and expectations that AI-driven spending will sustain growth. Traders are also turning to geopolitical developments in Iran and the summit between Xi and Trump for next moves, as concerns mount that the war in the Middle East could keep inflation elevated and weigh on the global economy.
Trump arrived in Beijing for the first state visit to China by a US leader in nine years, as the world’s two largest economies look to stabilize ties with a summit playing out against the backdrop of the Iran war.Trump is scheduled to meet with Chinese President Xi Jinping at the Great Hall of the People on Thursday morning.
Elsewhere, US inflation reports this week have shown mounting price pressures, pushing traders to boost wagers on a Fed rate hike in the coming year. The yield on benchmark 10-year Treasuries rose to the highest since July.
US wholesale inflation accelerated in April to the fastest pace since 2022 on a war-driven increase in energy prices that’s feeding into higher freight transportation costs. The producer price index rose 6% from a year ago, according to Bureau of Labor Statistics data out Wednesday, eclipsing economist estimates and coming in after a hot consumer price readout.
First-quarter profits at S&P 500 companies have surged 27% so far, more than double the roughly 12% analysts had expected — the fastest year-on-year earnings growth outside of recoveries from major shocks since 2004.
With inputs from Bloomberg
