World Street | Nvidia hits $3-trln mcap, US markets at record high, Foxconn ups guidance and more

World Street offers a sneak peek into the world of business and economy.

Nvidia has surpassed Apple Inc in terms of market capitalisation as it moved past the $3 trillion mark. US benchmarks- the S&P 500 and Nasdaq Composite hit new record highs overnight, buoyed by hopes of Fed's rate cutting cycle. Taiwan based iPhone maker Foxconn raised its outlook for the second quarter amid strong demand. China's Shanghai and Shenzhen stock exchanges are considering withholding some value-added market data from quant funds. US private equity firm Blackstone has leaped into buying homes in the UK. All this and much more on the June 6 version of World Street.

Marching ahead

Nvidia surged past Apple in market capitalisation overnight, clinching the spot of the second-most valuable public company in the US, trailing only behind Microsoft. Nvidia hit a milestone $3 trillion market cap after its shares rose over 5 percent overnight. The company was already the world's most valuable chipmaker.

The company's shares have been on a remarkable uptrend, rising by over 24 percent since reporting strong first-quarter earnings in May, fueled by its dominant position in AI chips for data centers.

Sitting on top

The two US benchmarks - the S&P 500 and Nasdaq Composite - hit fresh record highs overnight driven by a rally in technology stocks. This surge was fueled by hopes of the probable start of the Federal Reserve's rate-cut regime following softening jobs market data.

The May private payrolls report reflected a softening in labor market conditions, fueling expectations for rate cuts by the Fed this year. A separate report showed a decrease in job openings to the lowest level in over three years, which added to the sentiment. Traders now perceive a nearly 69 percent probability of a rate cut in September, compared to around 50 percent the previous week, according to the CME's FedWatch tool.

Better days ahead

Taiwan-based Foxconn, which is Apple's primary iPhone assembler, stated recording 22.1 percent year-on-year surge in its revenue in May, setting a new record for the month. The company had initially projected growth for the second quarter on a sequential as well as yearly basis, but now anticipates even stronger performance, citing unexpectedly high demand for AI servers. However, no specific details were provided regarding this increased demand.

Hiding secrets

The Shanghai and Shenzhen stock exchanges are contemplating suspending specific value-added market data feeds to institutions like computer-driven quant funds, Reuters reported. This move is part of Chinese regulators' efforts to increase oversight of a sector accused of exacerbating market volatility. The exchanges are considering halting the provision of detailed transaction information, including tick-by-tick data, the report suggested.

Changing streams

US private equity giant Blackstone plans to buy 1,750 new homes from British housebuilder Vistry. This decision comes as institutional investors increasingly invest in rental properties, capitalizing on a perceived shortage. Amidst challenging market conditions for sectors like offices and retail, rental homes have proven more resilient.

Vistry also announced the agreement on Tuesday, revealing that Blackstone Real Estate, along with minority investment partner Regis, would acquire the homes with a development value of £580 million ($740 million). This also marks Blackstone's second acquisition from Vistry in just eight months, following its purchase of over 2,800 mixed-tenure new homes last November.

The big gets bigger

The Dubai Mall, known as the world's largest shopping complex, is getting a makeover as its developer Emaar Properties announced an expansion of the mall worth around 1.5 billion dirhams ($408 million).

Spanning across 12 million square feet and linked to the iconic Burj Khalifa, the world's tallest skyscraper, the mall is an unparalleled destination. The latest expansion plan, announced by the developer, aims to introduce 240 new luxury retail outlets and dining establishments, further enhancing the mall's allure.

Eyes on ECB

The European Central Bank is widely expected to start cutting interest rates for the euro area in its upcoming monetary policy meeting later today. This will also mark the first time that the ECB will cut rates since September 2019.

Despite the optimism, investors are also keeping a close eye on developments following a slightly higher-than-anticipated euro zone inflation, which may delay the ECB's rate cuts.