Global equities rallied on optimism from the Trump-Xi summit, strong US data and easing inflation fears, pushing the S&P 500 up 0.77% to top 7,500, the Nasdaq +0.88%, Nvidia +4.39%, Cisco +13.41% and tech IPO Cerebras up 68% on its $5.5 billion float; STOXX 600 +0.76% and Italy's FTSE MIB +1.15% while Asian markets were mixed (Nikkei -1.16%, KOSPI -3.66%, Hang Seng -0.95%, CSI 300 +0.04%, Shanghai +0.12%). The risk-on move and tighter corporate spreads are constructive for crypto and DeFi adoption and token demand as investors seek higher-beta assets and AI-driven tech flows, though regional divergences and macro risks imply uneven CEX/DEX inflows and potential market rotation.

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Global equities advanced sharply as improving sentiment around US-China relations, encouraging US economic data, and easing inflation concerns boosted investor appetite for risk assets, according to analysts at Deutsche Bank.

The analysts said markets reacted positively to developments surrounding the Trump-Xi summit in Beijing, while corporate earnings and growing enthusiasm around artificial intelligence further supported gains across equities.

Equities rally with tech and AI leadership

Deutsche Bank analysts said global markets delivered a strong performance as investors responded positively to geopolitical and economic developments.

Ahead of all that, global markets had generally put in a strong performance yesterday, thanks to positive noises from the Trump-Xi summit in Beijing, a decent batch of US data, and easing fears about inflation. So that pushed the S&P 500 (+0.77%) to another record, topping the 7,500 mark for the first time. And other risk assets performed well too, with US IG spreads closing at their tightest level in 3 months.
Deutsche Bank

The rally was led by technology and artificial intelligence-related companies, which continued to attract strong investor demand.

The benchmark S&P 500 climbed 0.77%, while the tech-heavy Nasdaq Composite gained 0.88% to reach a fresh record high.

Optimism surrounding AI-related companies also strengthened market momentum.

Shares of Cisco Systems surged 13.41% after the company issued stronger-than-expected guidance in its latest earnings release.

Investor enthusiasm surrounding artificial intelligence also intensified following the public debut of Cerebras Systems, whose shares jumped 68% at the open after its $5.5 billion initial public offering.

Nvidia leads gains among major tech stocks

The AI-driven rally also lifted several large-cap technology stocks, particularly among the so-called “Magnificent 7” companies.

As cited in a Deutsche Bank note, “Nvidia (+4.39%) led the gains for the Magnificent 7 (+0.49%) while the Nasdaq (+0.88%) hit a record high of its own as well. That wasn’t just confined to the US either, with the STOXX 600 (+0.76%) advancing, whilst Italy’s FTSE MIB (+1.15%) hit a post-2000 high.”

Shares of NVIDIA rose 4.39%, leading gains among major US technology firms.

European equities also posted solid advances during the session.

The STOXX Europe 600 rose 0.76%, while Italy’s FTSE MIB climbed 1.15% to its highest level since 2000.

Mainland China outperforms weaker Asian markets

Despite strength in US and European markets, Asian equities delivered a mixed performance, with several key regional indices trading lower.

“Asian equities have also struggled, with the Nikkei (-1.16%), the KOSPI (-3.66%) and the Hang Seng (-0.95%) all lower, although in mainland China there’s been a relative outperformance, with the CSI 300 (+0.04%) and the Shanghai Comp (+0.12%) up modestly.”

Japan’s Nikkei 225 fell 1.16%, while South Korea’s KOSPI declined 3.66%.

Hong Kong’s Hang Seng Index also dropped 0.95%.

However, mainland Chinese markets showed relative resilience.

The CSI 300 edged up 0.04%, while the Shanghai Composite gained 0.12%.

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