In an intriguing start to the week, US stock markets showcased notable gains, riding the wave of optimism surrounding artificial intelligence (AI) advancements. A standout performer, Nvidia, saw its stock soar back above $900 per share, eagerly anticipated product announcements and discussions looming at their GTC 2024 developers conference. This buzz wasn’t isolated to Nvidia; both Apple and Google enjoyed upward trajectories in their stock prices following reports of negotiations to integrate Google’s Gemini AI into iPhone functionalities. Furthermore, the oil markets saw a significant uptick, with WTI crude reaching its highest levels since early November, alongside a gradual increase in Treasury yields leading up to the Bank of Japan’s (BOJ) meeting.

The air is thick with anticipation as we head into a week brimming with major macroeconomic events, including 14 rate decisions from central banks around the globe. All eyes are particularly on the BOJ, Federal Reserve, Bank of England, and the Swiss National Bank. The BOJ meeting later tonight is surrounded by speculation, with some expecting a shift away from the Negative Interest Rate Policy (NIRP) based on recent wage negotiations and economic data. However, the odds seem stacked against this, with BOJ futures pricing in a less than 40% chance for a hike.

On the European front, ECB speakers have been shaping policy expectations for the rest of the year, hinting at potential rate cuts starting in June. This comes amid broader geopolitical movements, including Putin securing another 6-year term in Russia’s elections, an outcome that surprised no one.

In the US, various economic indicators painted a mixed picture of the current economic landscape. The Trucking Conditions Index showed improvement, while the New York Fed Services Business Activity indicated a modest uptick. Meanwhile, Canada reported a slight increase in industrial product prices and a dip in existing home sales.

Corporate news also captured investors’ attention, with Apple reportedly in talks with Google and OpenAI for potential collaborations, signalling a significant interest in AI capabilities. Nvidia remained a hot topic, with rumors swirling around its new B100 “Blackwell” GPU architecture.

Across Europe and Asia, economic data and geopolitical discussions continued to influence market movements. Notable was the Euro Zone’s trade balance improvement and ongoing talks in Doha concerning a Gaza truce. China announced plans to enhance its bank card sector, while Iraq committed to OPEC+ voluntary oil cuts.

In corporate news, several companies, including SAIC and ERJ, shared their quarterly earnings, offering investors a glimpse into their financial health and future expectations.

As the week progresses, market participants will keenly watch the outcomes of the central bank meetings and any further developments in corporate and geopolitical arenas. The current momentum in the US stock markets, fueled by AI optimism and strategic corporate moves, sets a promising tone for the days ahead.