Overview:
Global markets demonstrated mixed sentiment across Wednesday and Thursday sessions as U.S. inflation data sustained dollar momentum and elevated interest rate expectations. Technology stocks advanced on Nvidia's robust earnings, while precious metals and crude oil retreated. Meta's landmark settlement with nearly half of U.S. states represents a significant regulatory resolution in the social media sector, while corporate profit growth in Asia continued at varied rates.
Details:
Meta agreed to settle litigation brought by 47 U.S. states regarding allegations that the platform deliberately encouraged addiction among minors. The settlement value reached USD 17 billion. Virginia pursued a separate settlement valued at USD 353 million. The agreement resolves claims that Meta collected data from children under 13 without parental consent and deployed practices designed to maximize user engagement among adolescents.
Nvidia reported second-quarter fiscal year 2027 revenue of USD 96.2 billion, exceeding consensus market expectations. The chipmaker's results reinforce its dominant position in artificial intelligence infrastructure, though investor concerns regarding competitive concentration persist despite the positive guidance.
U.S. inflation measured 3.7 percent in July according to the personal consumption expenditures index favored by the Federal Reserve. The reading supported expectations of potential interest rate increases, strengthening the dollar to eight-day highs. Gold prices declined 0.6 percent on spot markets to USD 4,670 per troy ounce, while crude oil Brent contracts retreated to USD 87 per barrel amid expectations of potential Iranian-Qatari negotiations affecting regional supply dynamics.
South Korea's central bank raised its benchmark lending rate by 25 basis points, marking the second consecutive increase as authorities target inflation control. Industrial profit growth in China decelerated to 11.2 percent year-over-year in July, the weakest pace recorded through 2026.
Outlook:
Markets await commentary from Federal Reserve Chair Kevin Powell for further clarity on monetary policy direction. Investors remain focused on potential Iranian negotiations and their implications for Middle Eastern oil supply and Strait of Hormuz passage.