Jornal Do Brasilia - Stocks extend record run as trade, AI dominates

The Dow briefly topped 48,000 points as all three of Wall Street's main indices set record highs when trading started, following fresh peaks set in London and some Asian markets as US President Donald Trump voiced optimism on the eve of crunch talks with China's President Xi Jinping.

Investors are looking ahead to a meeting of the Federal Reserve, which observers expect will unveil a quarter-percentage-point cut to borrowing costs, as well as earnings reports from tech giants Meta, Microsoft and Google-parent Alphabet after trading closes in New York.

"Sentiment is as bullish as it can be heading into what could be one of the most consequential two-day periods for markets this quarter," said City Index and FOREX.com analyst Fawad Razaqzada.

The European Central Bank and the Bank of Japan are expected to hold interest rates steady this week.

Ahead of meeting Xi, Trump indicated that a trade deal had been reached with South Korea's President Lee Jae Myung.

Ahead of his arrival in South Korea, Trump told reporters he expects "a lot of problems are going to be solved" during his first in-person discussion with Xi since returning to the White House this year.

The two leaders are set to meet Thursday in Busan, a southern port city not far from the APEC summit attended by Trump.

Geopolitical hopes have added to an already jubilant atmosphere on Wall Street, with artificial intelligence giant Nvidia in particular benefitting from comments by Trump that fuelled speculation it might be allowed to sell chips in China.

Trump's "remarks sent Nvidia soaring to a $5 trillion company and propelled the S&P 500, Nasdaq 100 and Dow Jones to new record levels," said Razaqzada.

"In a market already high on AI-fuelled enthusiasm, that was all investors needed to keep the rally going," he added.

After gaining five percent on Tuesday, Nvidia shares rose further on Wednesday, helping it to become the world's first company with a market capitalisation of $5 trillion.

Benchmark stocks indices in Tokyo and Seoul each reached record highs Wednesday.

After Seoul closed, the United States and South Korea reached an agreement to maintain reciprocal tariffs at 15 percent and to reduce levies on automobiles and auto parts.

Taipei gained more than one percent on the day and Shanghai tracked moderate gains, while Hong Kong was closed for a public holiday.

In company news, shares in UK drugmaker GSK rose more than two percent in London after it raised its full-year guidance on strong sales growth.

Shares in Mercedes-Benz rose more than four percent after the company reassured investors it faced no immediate production shutdowns due to microchip shortages, even though third-quarter net profits plunged more than 30 percent due to Trump's tariff blitz as well as slumping sales in China.

The price of copper reached a record high Wednesday, with the metal boosted also by tight supply concerns.

- Key figures at around 1630 GMT -

New York - Dow: UP 0.6 percent at 47,980.63 points

New York - S&P 500: UP 0.3 percent at 6,907.35

New York - Nasdaq Composite: UP 0.5 percent at 23,952.23

London - FTSE 100: UP 0.6 percent at 9,756.14 (close)

Paris - CAC 40: DOWN 0.2 percent at 8,200.88 (close)

Frankfurt - DAX: DOWN 0.6 at 24,124.21 (close)

Tokyo - Nikkei 225: UP 2.2 percent at 51,307.65 (close)

Hong Kong - Hang Seng Index: Closed for a holiday

Shanghai - Composite: UP 0.7 percent at 4,016.33 (close)

Euro/dollar: UP at $1.1662 from $1.1656 on Tuesday

Pound/dollar: DOWN at $1.3238 from $1.3336

Dollar/yen: UP at 152.07 yen from 152.06 yen

Euro/pound: UP at 88.10 from 87.80 pence

Brent North Sea Crude: UP 1.2 percent at $64.62 per barrel

West Texas Intermediate: UP 1.3 percent at $60.93 per barrel

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D. Barbosa--JDB