Nasdaq leads losses in New York as tech rally loses steam

DCM Editorial Summary: This story has been independently rewritten and summarised for DCM readers to highlight key developments relevant to the region. Original reporting by Irish Times, click this post to read the original article.

Global stock markets were choppy on Thursday as concerns about lofty valuations of leading technology companies weighed on sentiment after artificial intelligence chipmaker Nvidia reported strong quarterly results.

Dublin

Euronext Dublin finished the day up 1.5 per cent as the home builders enjoyed a surge.

Glenveagh Properties and Cairn Homes climbed 2.1 per cent and 3.7 per cent respectively after a positive broker’s note boosted the sector.

The banks also enjoyed a bounce, with AIB up 1.5 per cent, while Bank of Ireland rose 2.4 per cent.

Kilkenny-based nutrition group Glanbia held on to the 4 per cent gain it made on Wednesday after reporting that it expects to post between 7 and 11 per cent earnings per share growth this year. It rose 0.4 per cent on Thursday.

Cavan-based insulation specialist Kingspan was down marginally again after losing 3.2 per cent on Wednesday. Its share price is now €82.

The busiest stock on the index was budget airline Ryanair which climbed 2.3 per cent to €28.10 after 64 million shares were traded.

London

Britain’s FTSE 100 hit a record high, supported by a rally in shares in Rolls-Royce after its forecast upgrade and in LSEG after its share buyback.

Rolls-Royce rose 9.1 per cent after reporting a 40 per cent jump in annual profit, driven by strong demand for its aero-engines and rising power needs from data centres. British aerospace and defence stocks rose to an all-time high following the results.

The blue-chip FTSE 100 index closed 0.4 per cent higher at 10,846.70 points, while the domestically focused mid-cap FTSE 250 was also up 0.4 per cent.

Howden Joinery and London Stock Exchange Group vied for top billing on the FTSE 100, with Rolls-Royce flying closely behind.

Kitchen supplier Howden Joinery leapt 11 per cent as it said it was “well placed to outperform our competitors” and reported a profit that beat expectations.

Aside from Hikma, blue-chip fallers were dominated by mining stocks. Fresnillo fell 5.1 per cent, Antofagasta fell 4.4 per cent, Anglo American fell 3.6 per cent, reversing Wednesday’s gains.

Europe

On the Continent, the Cac 40 in Paris closed up 0.7 per cent, while the Dax 40 in Frankfurt rose 0.5 per cent. The Euro Stoxx 600 index fell 0.11 per cent. MSCI’s All Share Index was down 0.30 per cent after rising to a record high of 1,063.86.

Meanwhile, Italy said it would adopt a less punitive approach to irregularities by financial companies, in an attempt to improve the way its capital markets work and boost the appeal of the Milan bourse.

The government approved a decree giving firms the possibility to reduce sanctions by agreeing commitments with the authorities. The new rules also envisage no penalties at all in the case of minor infringements, a cabinet statement showed.

New York

The Nasdaq Index led losses, dropping 1.7 per cent, as a rally in technology stocks lost steam while the Dow Jones Industrial Average fell 0.5 per cent by mid afternoon in New York.

Nvidia’s results failed to enthuse investors and reigniting worries about a possible AI bubble even as the chipmaker reported earnings that were largely ahead of market forecasts.

The AI bellwether dropped 4.5 per cent despite better-than-expected results for the January quarter and an upbeat current-quarter revenue forecast.

Most megacap and growth stocks were lower, with Alphabet and Amazon down more than 1 per cent each.

Meanwhile, the S&P 500 software and services index gained 0.7 per cent, rebounding from a recent rout, as Salesforce climbed 2 per cent despite a subdued revenue forecast for its fiscal 2027.

Among other stocks, Trade Desk fell 5 per cent after the advertising technology firm forecast first-quarter revenue below estimates amid mounting pressure from larger rivals.

JM Smucker jumped 6 per cent after the Uncrustables maker beat third-quarter expectations and appointed two directors to its board in a deal with activist-investor Elliott Investment Management. (Additional reporting: Agencies)