European shares seen opening higher as AI stocks lift sentiment after Wall Street rally

what happened

European stocks are expected to open slightly higher on Thursday, following an overnight Wall Street rally driven by AI and semiconductor shares. US stock futures, however, are mixed, with Nasdaq and S&P 500 contracts falling after media reports said Nvidia's board may replace CEO Jensen Huang amid new allegations of infidelity.

Gold slipped 0.3% to $3,975 an ounce, its lowest level in more than a week, as expectations of higher interest rates strengthened the dollar. Brent crude dropped below $92 a barrel after Saudi Arabia said its October crude output rose 26%, one of the highest monthly levels in years.

Investors will focus on Applied Materials and Cisco earnings after the US close, US jobless claims and existing home sales data, and the producer price report due on Friday.

why it matters

Expectations of a December Federal Reserve rate increase, which many now see as almost certain after a strong October jobs report, set the tone for trading. Higher yields and a firmer dollar weigh on gold, while optimism around AI supports technology stocks. Uncertainty over Nvidia's leadership matters for the whole sector, since the company remains a key driver of major indexes.

market impact

US and European indexes: AI stocks support gains, Nvidia weighs on futures; gold and oil under pressure

• ▼Brent pressure down — higher OPEC+ output adds supply to the market
• ▼Gold pressure down — expected rate hikes strengthen the dollar

instruments

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