Stocks ride the Al rush and gold gains; Powell speech in focus

Global shares rose on Tuesday as Al optimism boosted tech stocks, while expectations of US interest rate cuts pushed gold to record highs and investors awaited remarks from Federal Reserve Chair Jerome Powell.

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The MSCI world equity index, which tracks shares in 49 countries, edged up 0.18, driven by advances in Europe and Asia.

Wall Street shares were set to hold on to gains after a tech-driven rally pushed indexes to record closing highs on Monday, for the third straight session.

Powell’s comments, due later in the day, could play a key role in shaping interest rate expectations at a time when investors are weighing mixed signals from the Fed, with some officials advocating gradual cuts to keep inflation in check.

US stock index futures were steady, with S&P 500 E-minis mostly unchanged and Nasdaq 100 E-minis making small gains of 0.38.

On Monday, Nvidia announced it would invest up to $100 billion in OpenAl, with the first data centre gear to be delivered in the second half of 2026. The stock hit a record high, its gains underscoring its wider importance.

"It may not be an exaggeration to write that NVIDIA - the key supplier of capital goods for the Al investment cycle - is currently carrying the weight of US economic growth," said George Saravelos, global head of FX research at Deutsche Bank.

Gold hit a record above $3,784 per ounce, and was nearly 10% higher for the month so far.

Chris Weston, head of research at broker Pepperstone, noted that investors were hedging their exposure to stocks by buying gold.