Global markets started the week on a positive note as Nvidia’s valuation crossed the $5 trillion mark, sparking renewed confidence across the tech sector. Traders are now watching closely.
Global stock markets lifted early this week, powered by strength in the technology sector and a surge in the shares of Nvidia Corp. Nvidia closed above a US$5 trillion market-cap for the first time, helping to push the Nasdaq Composite to new highs and reinforcing investor optimism ahead of earnings data.
Tech’s lead has been clear: Nvidia, Apple Inc. and Microsoft Corp. are among the names traders are watching most closely this week. Their performance is shaping the mood across markets, including equities, currencies and even commodities.
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Nvidia’s Rise Signals Tech Confidence
Nvidia’s sharp rise comes after the company announced expansion of its artificial-intelligence partnerships and chip deals, bolstering investor faith in its long-term prospects. The milestone US$5 trillion valuation adds a few new zeros, but for many traders it also marks a sense of tech being back in the driving seat.
Markets Follow the Tech Climb
The Nasdaq’s strong start triggered ripple effects around the world. Europe and Asia followed with gains of their own and investors took more risk as safe-haven assets paused. In parallel, the US dollar eased slightly and gold retreated from recent highs.
Whilst the general market sentiment is positive, it is also fragile, especially with major corporation results and economic data on the way this week. Many traders are treating this rally as an opportunity to ride the wave, but they are also watching for signs that the momentum might slow down.
What Comes Next and Why It Matters
All eyes are now on the upcoming earnings reports from several tech giants, including Apple and Microsoft. Traders are wondering whether results will match expectations and whether guidance will sustain the upbeat sentiment in the face of global headwinds.
Why it matters: For traders, this tech-fuelled rally is important because it tends to lift risk assets broadly, move money into emerging-market assets and weaken traditional safe-havens. On the other hand, any stumble could quickly reset sentiment and trigger sharp moves across markets. Let us see how long the rally will last.
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