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ARKK ETF stock: Is Cathie Wood’s flagship fund a buy today?

Cathie Wood’s Ark Innovation Fund (ARKK) stock price is doing well this year, and it recently jumped to the highest level since 2022 as technology companies thrived. The ARKK ETF stock was trading at $79.72, up by 106% from its lowest level this year. 

ARKK ETF shenanigans are continuing

Cathie Wood’s ARKK ETF has gone through what the FT has called shenanigans in the past few weeks. Data compiled by ETF.com shows that the fund had over $3.2 billion in inflows last week, up sharply from almost zero a week before that.

ARKK ETF inflows and outflows

The ETF had a similar surge in August when the assets jumped by over $2.7 billion. According to the FT, the surge in assets was because of the huge Initial Public Offering (IPO) that happened recently.

The first time the fund saw a spike in inflows was before the Circle IPO, which was one of the most successful ones this year. It then had an inflows surge before the Figma and Bullish IPOs, and then the assets cratered by $2.7 billion a week later.

The recent surge in assets was linked to the two major IPOs that happened last week: Klarna and Gemini. Interestingly, the surge happened even though ARKK ETF did not participate in these funds.

The surge of inflows in an ETF like ARKK before a major IPO is known as ‘creations’ and ‘redemptions’, which allows the fund to reflect the value of its holdings. 

As such, the investors who bought the shares last week are unlikely to see a profit as they did in the last periods as the fund did not have any stakes in the companies that went public last week.

Is ARKK a good investment today?

The ARKK ETR came into prominence during the pandemic as its holdings ballooned, which made it one of the top-performing funds in Wall Street.

This situation reversed afterwards as inflation jumped, pushing the Federal Reserve to hike interest rates to the highest level in decades.

Recently, however, the ARKK ETF stock price has rebounded as most holdings in its portfolio have jumped. For example, Tesla stock price has rebounded recently and erased the losses made earlier this year.

Coinbase, its second-biggest holding, has benefited from the ongoing performance of cryptocurrencies and its growing role in the stablecoins and custody services.

Roku, the third-biggest constituent in the fund, has jumped to the highest point since February as its business improved.

The other top companies in the ARKK ETF are Tempus AI, Shopify, Robinhood, Palantir, and AMD.

So, is ARKK better than popular passing funds like QQQ and VOO? One of its shortcomings is that it has an expensive expense ratio of about 0.75%, much higher than the QQQM ETF, which costs 0.15% and the Vanguard S&P 500 ETF (VOO), which charges just 0.03%.

An expensive fund should compensate this with its strong and low-volatile returns over time. 

Data shows that the ARKK ETF stock has had a total return of minus 11% in the last five years, while the QQQM and VOO ETFs have gained by 107% and 103%, respectively in the same period.

ARKK fans will point to the fact that it has beaten these funds by far this year, as it rose by 40% compared to their returns of less than 20%. 

ARKK ETF stock price analysis 

ARKK stock chart | Source: TradingView

The weekly timeframe chart shows that the ARKK ETF stock has rebounded in the past few years, moving from a low of $29.59 in 2023 to $80 today.

It has recently moved above the upper side of the ascending channel pattern and formed a bullish flag pattern. It also formed a golden cross pattern as the 50-week and 200-week Exponential Moving Averages (EMA) crossed each other.

Therefore, the stock will likely continue rising as bulls target the psychological level at $100, which is about 25% above the current level. In the long term, the fund may jump and retest the all-time high at $157, up by 100% from the current level.

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ULTY ETF is a 117% yielding fund, beating VOO: is it a buy?

The YieldMax Ultra Option Income Strategy ETF (ULTY) has done well this year and is hovering at the highest point on record. ULTY was trading at $5.62, up by over 54% from its lowest level in April this year. So, is this high-yielding ETF a good buy?

How the ULTY ETF works

The YieldMax Ultra Option Income Strategy ETF is a top fund with over $3 billion in assets. It has become a popular fund among investors because of its high dividend yield, which, according to SeekingAlpha, stands at a whopping 117%.

Most importantly, unlike other covered call ETFs, ULTY has done better than the benchmark S&P 500 since its inception in terms of total returns. Data shows that its total returns in the past 12 months was 29%, much higher than the Vanguard S&P 500 Index (VOO) ETF’s 18.8%.

ULTY ETF vs VOO 

The same has happened this year as its total returns are 16.5%, higher than VOO’s 13.5%.

This ETF is different from other covered call funds in that its performance is purely dependent on the manager as it does not track a specific index. Instead, the advisor selects the stocks that the fund will invest in, by specifically looking at their implied volatility.

The fund’s goal is to find stocks that have a higher implied volatility, as these stocks always have a higher options premium, which allows it to generate substantial income.

In most cases, the advisor conducts his analysis by examining upcoming events that are expected to increase premiums. A good example of this is a company’s earnings or a major announcement.

The ULTY ETF’s advisor also conducts quantitative and qualitative screening, which evaluates an asset’s trading volume and liquidity on the asset and the options side.

READ MORE: Top news to drive the VOO and SCHD ETFs this week

After selecting the assets, the fund then writes call options, in which it receives its premium payment, which it returns to investors as a dividend. Additionally, it invests in short-term government treasuries, which also generate income, at a rate of approximately 4% per year.

A look at its current holdings show that the fund’s holdings are mostly in Affirm shares and its call options. Affirm stock price rose by over 7% on Monday after the company extended its BNPL option to Apple Pay in-store transactions, a move that may bring billions in value over time.

Is the ULTY ETF a good buy?

Historical data suggest that the ULTY ETF has been a good investment as its total returns have beaten those of generic funds like VOO and SPY.

It has also become one of the top ETFs in terms of its distributions, which have been relatively stable over time.

Still, this fund has some potential risks, including the ongoing NAV erosion because of its substantial yield. Also, the options section normally caps the upside. For example, it is likely that the fund will not benefit substantially from the recent Affirm stock price surge, as odds are that the target price was reached.

The other risk is that the fund’s performance typically depends on the expertise of the manager. This means that its performance may be affected if the existing manager leaves.

The post ULTY ETF is a 117% yielding fund, beating VOO: is it a buy? appeared first on Invezz

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SLV ETF analysis: What next for the blue-chip silver fund?

SLV silver ETF hit a fresh 14-year high on Tuesday as a weaker US dollar and a decline in Treasury yields bolster precious metals’ rallying. Investors have already priced in a September Fed rate cut of a quarter basis points. However, they are still seeking clues on the number of subsequent cuts before the year ends. 

SLV Rides Fed Rate Cut Wave as US Dollar Plunges 

SLV silver ETF has reached a new 14-year high as heightened expectations of a dovish Fed bolster non-yielding precious metals. In addition to the priced-in September rate cut, concerns over the health of the US economy and independence of the country’s central bank have been weighing on the US dollar while fueling silver price rallying.

On Tuesday, the dollar index extended its previous losses to trade at a 10-week low at $96.91 The index, which tracks the value of the greenback against a basket of six major currencies, has been under selling pressure since the start of 2025; dropping by over 10% year-to-date. Indeed, it has been trading below the once steady support zone of $100 since late May with the bulls lacking enough momentum to break past that level at the start of August.

Unlike a year ago when the Fed began easing its monetary policy, the US dollar has taken a different trajectory from US stocks and bonds. In addition to the expectations of a dovish Fed, concerns over the central bank’s independence may have the greenback slide further. 

Silver price and derivatives like the SLV silver ETF are set to continue benefiting from the negative outlook as investors choose to remain on the sidelines ahead of Fed’s interest rate decision. A weaker greenback tends to make dollar-priced assets like precious metals less expensive for buyers holding foreign currencies.

SLV ETF Technical Analysis

SLV ETF price chart | Source: TradingView

SLV silver ETF rose to a fresh 14-year high of $39.02 earlier on Tuesday before pulling back to $38.55 as at the time of writing. The derivative has risen by close to 45% year-to-date, hitting multi-year highs on several occasions. 

Even with the pullback, it remains within the bullish channel that has been in place since early April when tariff-related concerns pushed the ETF to its lowest level this year. With the steady bullish momentum, this pattern will likely define the asset’s movements in the ensuing sessions. 

Notably, the bulls are striving to unlock a fresh 14-year high at $40. However, the SLV silver ETF record a corrective pullback before rallying further towards the next target. Indeed, it has been in the overbought territory since late last week when it broke past the crucial resistance zone of $38. At the time of writing, it was at an RSI of 73. 

In line with these technical indicators, the range between Tuesday’s high of $39.02 and the resistance-turn-support zone of $37.50 will be worth watching in the near term. Even with a further pullback, it will likely hold steady above the 25-day EMA at $36.55. On the upside, further rallying will have the bulls eyeing the upper level of $39.50.

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USD/JPY forecast: traders bet on yen ahead of the BoJ, Fed decisions

The USD/JPY exchange rate pulled back this week as focus shifted to the upcoming Federal Reserve and Bank of Japan (BoJ) interest rate decision. It fell to a low of 146.25, down by almost 3% from its highest level in July.

Federal Reserve interest rate decision 

The USD/JPY exchange rate pulled back sharply as traders waited for the upcoming Federal Reserve interest rate decision.

All indications are that the bank will cut interest rates by 0.25% in this meeting as they make a strategic shift from focusing on inflation to the labor market.

Data released earlier this month showed that the economy created just 22,000 jobs in August as the unemployment rate rose to 4.3%. Wage growth momentum also stalled during the month.

More jobs numbers have painted to an economy that is not doing too well. According to the Bureau of Labor Statistics (BLS), the number of job vacancies in the UK has slowed in the past few months.

Additionally, a recent revision showed that the economy lost jobs in June for the first time since the pandemic era.

Companies have been reluctant to employ in the past few months because of Donald Trump’s tariffs, which have increased costs across the board. 

The USD/JPY exchange rate slump has coincided with the ongoing decline in US bond yields, with the 10-year yield falling to 4.02% and the five-year yield to 3.65%. Also, it has coincided with the ongoing stock market rally, with the S&P 500 and Nasdaq 100 indices jumping to a record high. The gold price has also jumped.

Bank of Japan interest rate decision 

The other notable catalyst for the USD/JPY exchange rate is the upcoming Bank of Japan interest rate decision on Friday.

Unlike the Federal Reserve, the BoJ is taking a different route on interest rates this year. While economists expect the bank to leave interest rates unchanged, there is rising expectation that the bank will hike interest rates at least once this year.

The BoJ has been concerned about the stubbornly high inflation despite the recent improvement. Recent data showed that the country’s inflation dropped to 3.1% in July, the lowest level since March this year. While the drop was notable, it remained much higher than what analysts were expecting.

As such, in theory, a situation where the Fed is cutting rates and the BoJ is cutting would benefit the Japanese yen, which explains why many investors have taken the position. In a note, BlueBay Asset Management, which has taken the position, said:

“We do think an October move is possible or likely. And so we think this is a more attractive moment to be long the yen, as long as Koizumi is the victor in the Liberal Democratic Party’s leadership contest.”

USD/JPY technical analysis 

USD/JPY chart | Source: TradingView

The daily timeframe shows that the USD/JPY exchange rate has pulled back in the past few months, moving from a high of 150.96 in August to 146.5p today. It recently dropped below the 50-period Exponential Moving Average (EMA).

The pair is now attempting to drop below the important support level at 146.30, a level it has failed to move below since July. This price is also along the bottom of the trading range of the Murrey Math Lines tool.

The MACD and the Relative Strength Index (RSI) indicators have continued falling in the past few weeks. Therefore, the most likely scenario is where the pair continues falling as sellers target the ultimate support level at 144.

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Here’s why the Baidu stock price is soaring in Hong Kong

Baidu stock price surged in Hong Kong on Wednesday, reaching its highest level since September 2023 as investors cheered its semiconductor investments and as Chinese technology companies soared. It is in its fourth consecutive week of gains and has jumped by almost 80% from the lowest level this year.

Baidu stock price jumps after analysts upgrade 

Baidu, China’s answer to Google, has been in a strong bullish uptrend in the past few days after Arete Research cited the company’s upgrade of the stock from sell to buy, citing its chip business, which will offset its slowing advertising venture.

Other analysts, including those from Goldman Sachs, Roth, and Benchmark, have all maintained their bullish outlook for the stock.

The main bullish view for the company is its Kunlun business unit, which is building chips that could compete with the likes of AMD and Nvidia. In a recent announcement, the company said that the unit has secured a big order from China Mobile, which will use them to power its AI servers.

AI growth to offset the advertising business 

Baidu hopes that its AI business will help to offset the advertising business, which has struggled as the Chinese economy slows.

Data released this week showed that China’s retail sales and industrial production retreated sharply in August. In most cases, this business is usually affected by the health of the Chinese economy because, unlike Google, Baidu is primarily a domestic company.

The most recent results showed that Baidu’s total revenue dropped by 4% to RMB 32.7 billion or $4.5 billion. Its operating income slowed by 45% to $457 million, while the adjusted EBITDA dropped by 29% to $906 million.

The results also showed that Baidu has made substantial progress in its autonomous vehicle industry, with its Apollo Go entering major deals with Uber and Lyft. These partnerships will see these American companies deploy these systems in key international markets. The CEO said:

“Apollo Go accelerated global expansion while actively exploring new business models, underscored by our leadership in both left-hand drive and right-hand drive robotaxi markets globally.”

Analysts expect that the weakness in the advertising business will continue in the coming months. The average estimate of 19 analysts is that the company’s revenue this quarter will be CNY 30.9 billion, a 7.7% drop from the same period last year.

Analysts see the annual revenue falling to CNY 129.79 billion, down by 2.50% from what it made last year. The company’s top initiatives are expected to start bearing fruit in 2026, with its revenue projected to increase to CNY 136.33 billion.

Meanwhile, the ongoing Baidu stock price surge has coincided with the performance of other Chinese technology companies. Tencent Holdings stock has jumped to H$660, up by over 82% from its YTD low. 

Similarly, Alibaba stock soared to $162 up by 106% from its January lows. Other top companies like Xiaomi and PDD have also jumped lately, while optimism of the US deal on TikTok.

Baidu stock price analysis 

BIDU stock chart | Source: TradingView

The three-day timeframe chart shows that the Baidu share price bottomed at $75 earlier this year and then rebounded to nearly $135 today. It has just crossed the important resistance level at $120, its highest level in September.

The stock has jumped above the 50-day and 50-day Exponential Moving Averages (EMA) and is now nearing the overshoot point of the Murrey Math Lines.

Also, the stock has become highly overbought as the Relative Strength Index has jumped to 82 and the Stochastic Oscillator moved to nearly 100.

Therefore, while the uptrend will continue, there is a risk that it will drop and retest the key support at $120. Such a drop will be part of a break-and-retest pattern, which is a common continuation sign.

The post Here’s why the Baidu stock price is soaring in Hong Kong appeared first on Invezz

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Baidu, Alibaba lead Chinese tech rally to 4-year high: what this rally means for investors

Baidu and Alibaba are at the center of one of the most exciting rallies in Chinese tech shares in years, pushing the sector to heights not seen since 2021.

As of mid-September 2025, these two giants have grabbed the attention of investors far and wide, driven by bold moves in artificial intelligence (AI), refreshed growth plans, and the allure of huge future opportunities.

The Hang Seng Tech Index has climbed more than 3%, powered not only by Baidu and Alibaba but also by other movers like JD.com and Meituan.

After some choppy years, confidence seems to be coming back strong to China’s tech space.

What’s fueling Baidu and Alibaba’s rise?

AI is the main engine behind this sharp climb. Baidu has been making headlines with its advanced ERNIE AI model and a big push towards using self-made AI chips for training.

This strategy not only boosts their tech prowess but also helps cut reliance on foreign suppliers.

Baidu’s AI cloud revenue shot up 42% year-on-year, signaling a successful shift from its old ad-based model to more stable, tech-centered revenue streams.

Plus, Baidu’s autonomous driving service, Apollo Go, is growing rapidly and getting close to turning a consistent profit, which adds extra confidence for the long haul.

On the flip side, Alibaba isn’t far behind. Its shares have risen thanks to news that it’s started using homegrown AI chips in training its projects, a major step in China’s AI arms race.

Alibaba’s cloud division grew 26% year-on-year, and its AI product sales have been in triple-digit growth for eight straight quarters.

What’s clear is that Alibaba is evolving beyond just e-commerce; it’s becoming a powerhouse in AI and cloud solutions.

Both companies are now seen as leaders in China’s growing AI revolution, with many betting this will pay off big time in the years ahead.

What this rally means for tech investors

This rally brings a wave of optimism for investors who have been cautious amid years of Chinese regulatory crackdowns, trade tensions, and economic uncertainty.

Seeing Baidu and Alibaba reach their highest stock prices since 2021 shows investor sentiment is shifting in a positive direction.

There is a growing belief that, despite hurdles, China’s tech giants can lead the way by pioneering in AI developments.

Of course, risks remain. Baidu still faces margin pressures and the challenges of delivering on its AI promises, while Alibaba juggles its rapid growth with maintaining profitability and rewarding shareholders.

But when compared to many US tech giants, their valuations look pretty attractive, especially with China’s huge market size and government backing of AI growth.

For many investors today, Baidu and Alibaba have become must-haves, backed by a long-term vision that China’s tech dominance is only just beginning its rise.

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US lawmakers probe Futurewei, Huawei and Nvidia link over espionage fears

According to a Bloomberg report, lawmakers in Washington have intensified scrutiny on Futurewei Technologies, a subsidiary of Huawei, after discovering its long-running shared presence at Nvidia’s Silicon Valley campus.

The concern stems from fears that this arrangement may have provided China-linked Futurewei access to sensitive American semiconductor and artificial intelligence work.

A bipartisan letter from the House Select Committee on China has requested detailed documents and records, highlighting the potential risks associated with a blacklisted firm being co-located at one of the United States’ most critical technology hubs.

Shared site in Santa Clara under investigation

The investigation focuses on the discovery that Futurewei Technologies Inc. maintained the prime lease on three buildings at Nvidia’s Santa Clara headquarters for years before Nvidia acquired full control in 2024.

Committee Chairman John Moolenaar, a Republican, and Ranking Member Raja Krishnamoorthi, a Democrat, detailed this in their letter to Futurewei, citing corporate filings that confirmed its status as a Huawei subsidiary.

Lawmakers argue that the proximity of Futurewei to Nvidia gave the company unusual access to advanced US research, hardware, and AI capabilities.

The letter described this arrangement as a potential channel for espionage. Concerns are heightened because Huawei has been blacklisted by the US government since 2019 due to national security risks.

Prior allegations raise further concerns

The committee letter also referenced a 2018 incident that raised red flags about Futurewei’s practices.

According to a complaint at the time, employees allegedly used fake American company identities to gain entry into a Facebook telecommunications summit after Huawei was barred.

This past behaviour, lawmakers suggest, amplifies worries about the company’s motives and its decision to establish operations next to a global leader in semiconductors.

The congressional request asks Futurewei to hand over all records tied to the Santa Clara site, including the selection process for the facility, documentation of interactions with Nvidia, and explanations of its activities there.

The committee has set a deadline of 28 September for these disclosures.

Nvidia and committee responses

An Nvidia spokesperson said the company keeps its offices and intellectual property protected and emphasised that, even when neighbours share nearby locations, Nvidia maintains its own secure campus.

The House committee itself declined to comment further beyond the letter and its associated press release.

Futurewei did not immediately respond to requests for comment.

The company remains a central focus of American national security concerns due to its ownership by Huawei, which has faced restrictions not only in the US but across multiple Western markets.

Next steps and broader implications

The lawmakers’ probe reflects heightened vigilance over possible Chinese technology infiltration at a time when semiconductors and AI are at the centre of strategic competition.

By demanding full disclosure of Futurewei’s activities, US officials aim to determine whether its presence alongside Nvidia presented security risks.

The issue also highlights how real estate and office co-location in Silicon Valley can complicate national security enforcement.

With technology firms often leasing shared or neighbouring spaces, lawmakers are likely to push for stricter oversight on who occupies strategic tech campuses.

The outcome of the committee’s request, due later this month, could shape future policy on foreign subsidiaries operating in proximity to sensitive US firms.

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Ben & Jerry’s co-founder Jerry Greenfield resigns, says Unilever silenced brand’s activism

Jerry Greenfield, co-founder of Ben & Jerry’s, has stepped down from the ice cream company, his longtime partner Ben Cohen announced on Wednesday, in a move that has brought to a head the hostile relationship between the Vermont-based brand and its parent, Unilever, which acquired it in 2000.

In an open letter posted on social media, Greenfield said the brand’s independence had been eroded under Unilever, which he accused of curbing its history of outspoken social activism.

“Standing up for the values of justice, equity, and our shared humanity has never been more important, and yet Ben & Jerry’s has been silenced, sidelined, for fear of upsetting those in power,” he said.

He said he could no longer, “in good conscience” continue to remain an employee of Ben & Jerry’s.

The resignation marks the latest chapter in a dispute that has simmered for years, particularly since 2021 when Ben & Jerry’s halted sales in Israeli-occupied West Bank territories, citing inconsistency with its values.

Source: X

‘Independence to speak in support of peace, justice, human rights, gone’: Greenfield

Greenfield pointed to the merger agreement that originally guaranteed Ben & Jerry’s autonomy in pursuing its social mission, which has been central to its identity since its founding in 1978.

“That independence existed in no small part because of the unique merger agreement Ben and I negotiated with Unilever,” he said.

Unilever has disputed the co-founder’s claims.

A spokesperson for The Magnum Ice Cream Company, the newly created unit set to house Ben & Jerry’s along with other Unilever ice cream brands, said it disagreed with Greenfield’s assessment.

“We have sought to engage both co-founders in constructive dialogue on strengthening Ben & Jerry’s values-based position,” the spokesperson said.

Unilever itself did not immediately respond to requests for comment.

Disagreements over listing of Ben & Jerry’s as part of ice cream division

The dispute comes as Unilever prepares to spin off its global ice cream division, including Ben & Jerry’s, into a separate listed entity in November.

Both Greenfield and Cohen recently urged investors and Unilever’s board to exclude Ben & Jerry’s from the plan, insisting the brand must regain independence.

Last week, Cohen disclosed that the brand had even attempted to arrange a sale to investors at a valuation of $1.5 billion to $2.5 billion, but the proposal was rejected by Unilever.

The company has also accused its parent of interfering in management.

In March, Ben & Jerry’s alleged in court that Unilever dismissed its chief executive, David Stever, after he refused to “oversee the dismantling” of the company’s progressive values.

History of clashes between Ben & Jerry’s and Unilever

The ice cream maker has repeatedly taken its parent to court in recent years.

In February, it accused Unilever of pressuring it to stop criticizing former US president Donald Trump.

In November last year, it filed a lawsuit claiming Unilever had tried to dismantle its independent board to silence its support for Palestinian refugees during the Gaza war.

Ben & Jerry’s is one of the few major US brands to describe the conflict in Gaza as “genocide,” a position that has fuelled tensions with its owner.

Unilever, by contrast, has sought to temper the brand’s outspoken activism, arguing that political statements risk alienating customers.

Ben & Jerry’s legacy of activism

Since its founding, Ben & Jerry’s has built its identity on linking business with social causes.

In the 1980s, it advocated for reduced US military spending and opposed the Persian Gulf War.

In 2013, it launched a special flavour in support of marriage equality.

Following the murder of George Floyd in 2020, the brand released a statement titled We Must Dismantle White Supremacy, urging lawmakers to pass measures addressing the legacy of slavery.

More recently, in the wake of the 2024 US election, Ben & Jerry’s reiterated support for abortion rights, stricter gun laws, and ending arms sales to Israel.

“Ben & Jerry’s will continue to unapologetically support the advocates who champion the above agenda regardless of who sits in the Oval Office,” it said at the time.

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Europe markets open in green ahead of Fed decision: FTSE 100, STOXX 600 rise

Europe’s markets opened today with a quiet sense of hope but plenty of cautious eyes watching.

Investors are holding their breath ahead of the big US Federal Reserve announcement expected later, hoping for a rate cut that could ease the economic jitters we’ve all been feeling.

Early trading saw small gains across major indices like the FTSE 100 in London and Germany’s DAX, while France’s CAC 40 joined in with a modest lift.

Though the mood is generally upbeat, there’s still a fair share of uncertainty lingering around inflation, trade talks, and geopolitical concerns.

UK inflation held steady in August at 3.8%, staying stubbornly high despite expectations it might ease a bit.

Food prices kept climbing, and while some sectors saw small slowdowns, everyday costs like restaurants, hotels, and motor fuels nudged inflation upward.

The Bank of England is watching closely, balancing the tricky act of supporting growth without letting prices spiral further.

All eyes on the Fed and trade talks

The big question hanging over the market is whether the Fed will slash interest rates by a quarter point today.

The mood has been quietly hopeful for weeks now, with traders already pricing in that cut, but everyone’s still waiting to see what the Fed will say about the months ahead.

Will they hint at more easing or caution investors to hold tight? That’s the key. Add to this the ongoing US-China trade talks, which have been inching forward after a rough patch.

Some positive signals from Washington and Beijing have soothed nerves, especially since big tariff talks had been rattling investors.

Still, the reality is that a final deal is far from certain. This combination of cautious optimism is keeping Europe’s markets steady but ready for surprises.

Sector stories and market moves

Digging into the details, it’s clear the market’s mood is a mix of ups and downs depending on where you look.

Energy and mining stocks are getting a boost, thanks to rising commodity prices, with copper leading the charge as investors bet on easier money fueling demand.

Consumer-related sectors, especially car makers and travel companies, are picking up too, riding the wave of hopes for more spending once rates drop.

But it’s not all smooth sailing, as banks and insurers have felt some pressure, as worries about slower growth in parts of Europe and the European Central Bank’s cautious stance weigh on the sector.

The euro itself is holding firm against the dollar, giving exporters a slight edge. So while today’s trading reflects a hopeful spirit, there’s no ignoring the challenges bubbling beneath the surface.

Investors are moving carefully, balancing optimism with caution as the day unfolds.

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UK and US seal $42B tech pact during Trump’s visit

Britain and the United States have sealed a technology pact that combines investment with strategic cooperation in artificial intelligence, quantum computing, and civil nuclear energy.

The agreement positions Britain as a hub for AI and data infrastructure, with US firms pledging £31 billion ($42 billion) in commitments across cloud, semiconductors, and nuclear research, as per a Reuters report.

For Prime Minister Keir Starmer, the pact is also a response to pressure to revive economic growth, signalling a push for investment-friendly regulation while avoiding the more interventionist approach of the European Union.

Microsoft leads with £22 billion AI supercomputer project

Microsoft confirmed it will invest £22 billion in cloud and AI infrastructure, including Britain’s largest AI supercomputer, to be built in Loughton, north-east London.

The move strengthens Britain’s role in AI development and expands Microsoft’s existing ties, following the resolution of regulatory tensions over its Activision Blizzard acquisition.

Satya Nadella, Microsoft’s chair and CEO, outlined plans to use the investment to secure reliable transatlantic technology cooperation.

The announcement comes as Starmer seeks to position Britain as an attractive market for global technology firms, highlighting the UK’s regulatory flexibility compared to the European Union.

Nvidia deploys 120,000 GPUs in largest European rollout

Nvidia said it would deploy 120,000 graphics processing units across Britain, its biggest rollout in Europe to date.

The investment includes plans to bring up to 60,000 Grace Blackwell Ultra chips through a tie-up with Nscale, supporting OpenAI’s operations in the UK.

Nvidia vice president David Hogan said the expansion would mark a shift from Britain being “an AI taker” to becoming an AI developer.

The deployment of GPUs underpins Britain’s growing role in hosting large-scale AI models and computing capacity, which are central to health research and quantum computing innovation.

Google, CoreWeave, and other firms expand UK presence

Google announced a £5 billion investment, with a new data centre in Waltham Cross, north of London, and continued funding for DeepMind’s AI research.

The expansion underscores its long-term UK presence and role in AI development.

Cloud computing company CoreWeave confirmed a £1.5 billion investment in partnership with Scottish data firm DataVita, bringing its total UK investment to £2.5 billion.

Its focus will be on energy-efficient data centres, adding infrastructure capacity that complements Microsoft and Nvidia’s deployments.

Other US companies have also pledged funds. Salesforce, Scale AI, BlackRock, Oracle, Amazon Web Services, and AI Pathfinder will together add billions of pounds in commitments, ranging from cloud services to investment in AI systems.

Pact adds nuclear and quantum cooperation to growth agenda

The pact also covers joint projects in civil nuclear energy and quantum computing.

Britain said the agreement would streamline nuclear development, boosting energy security while linking transatlantic research.

It also includes collaborations in quantum systems, aiming to expand computing capabilities in both countries.

The US remains Britain’s largest single-country trading partner.

While Donald Trump’s administration had previously criticised European digital tax and online safety rules, such issues were not part of the negotiations.

Instead, the focus remained on AI, energy, and scientific research.

For Starmer, who has faced sustained pressure to accelerate Britain’s economic recovery after years of weak growth, the pact offers a path to attract high-value investment.

The scale of commitment—£31 billion—gives the UK one of the largest inflows of US-led technology investment in its history.

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