The FTSE 100 rose on Wednesday as investors prepared for Nvidia’s earnings, due to be released after the US close this evening.
US markets closed higher overnight as investors boosted their exposure to US stocks ahead of the most highly anticipated earnings release of any company globally.
This optimism spilt into European trade on Wednesday, and London’s leading index recovered some of yesterday’s losses in early trade to rise 0.3%.
Nvidia is now the single most important company in the world, due to its dominance in chips that power the AI revolution, responsible for the lion’s share of global equity returns over the past two years.
“The stock has become the heartbeat of the market, making up around 8% of the S&P500 weight, the single largest in history,” said Josh Gilbert, market analyst at eToro.
“Its market cap now eclipses the entire FTSE 100 and the ASX200, and is even larger than the entire global crypto market, underscoring just how outsized its role has become in global markets. That scale underlines why its earnings dates are fast becoming just as vital to investors as economic and central bank data.”
“Nvidia may be the market’s heartbeat, but that comes with the expectation of perfection, meaning even the smallest disappointment could spark outsized volatility across broader markets, not just Nvidia shares. But investors will likely see weakness as an opportunity, given the AI boom feels like it’s only just getting started.”
FTSE 100 movers
The FTSE 100 was led higher by JD Sports after the sports retailer rewarded loyal shareholders with a £100m buyback as the group continues to grapple with soft core markets.
“JD Sports investors breathed a sigh of relief as second-quarter numbers landed in line with market expectations, with group like-for-like sales down 3.0%,” explained Aarin Chiekrie, equity analyst, Hargreaves Lansdown.
“This was helped by America delivering a better-than-expected performance, despite the ongoing tariff-related uncertainty. Europe and especially the UK remain a drag on performance though, with like-for-like sales at the latter down 6.1%.
“Looking further out, the shift in focus from expansion to squeezing the most out of its existing store footprint is a welcome one. This should help to strengthen the balance sheet and provide more wiggle room for shareholder payouts – including a new £100mn share buyback announced today.”
JD Sports shares were 4% higher at the time of writing.
Prudential was also among the gainers, as investors reacted to steady first-half results that justified the stock’s 50% rally so far in 2025.
“Prudential had a decent first half, with solid growth in new business and cash generation across its core markets,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.
“Profits improved, helped by strong performances in Hong Kong and Indonesia, and the company raised its dividend while continuing share buybacks. Management says it’s on track to deliver its long-term goals and looks well placed to return more cash to shareholders over the next few years.”