Nvidia investment in OpenAI and Palestine recognition: How markets react to day main events

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How markets react to day main events

Key events of the day

At the UN General Assembly, French President Emmanuel Macron announced France’s recognition of Palestine and pledged to open an embassy once hostages are released and a ceasefire is in place. Following France, Belgium, Luxembourg, Malta, and Monaco also recognized Palestine, emphasizing their support for the region’s people.

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Meanwhile, thousands took to the streets in Italy to protest Israel’s military operation in Gaza. In Milan, demonstrations escalated into clashes with police, who used tear gas and water cannons, while arrests were made. Dockworkers in Genoa, Trieste, and Venice blocked shipments to prevent Italy from being used as a transit hub for arms deliveries.

Israel’s UN ambassador Danny Danon took a firm stance, declaring that the war would continue until all hostages are freed and Hamas is eliminated. He dismissed two-state solution talks as “theater detached from reality.”

Later that evening, tensions rose in Scandinavia as unidentified drones breached airspace over Copenhagen and Oslo. Airports in both capitals were temporarily closed, flights canceled or diverted, with police detaining suspects in Norway and conducting large-scale operations in Denmark.

On the diplomatic front, U.S.-China relations drew attention. U.S. Ambassador to China David Perdue said that a meeting between Presidents Donald Trump and Xi Jinping, initially expected this fall, would likely take place only next year. He emphasized that relations between the two leaders are “very good and encouraging.” A U.S. delegation led by Democrat Adam Smith met with Chinese officials in Beijing to discuss military cooperation and the fate of TikTok.

In technology, a global-scale development unfolded: Nvidia announced plans to invest up to $100 billion in OpenAI to build data centers with a capacity of 10 gigawatts. Nvidia shares jumped nearly 4%, cementing the company’s status as the world’s most valuable business.

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Market reaction

On Tuesday, European stock indexes opened higher following Wall Street’s rally. Euro Stoxx 50 futures rose 0.1%, France’s CAC 40 and Germany’s DAX added about 0.2%, while the FTSE 100 climbed 0.1%.

Optimism was driven by the Nvidia-OpenAI announcement. Nvidia shares gained 3.9% that day, while the S&P 500, Nasdaq, and Dow all closed at record highs. Oracle surged 6% after leadership changes, and Apple added 4% on strong iPhone sales.

Meanwhile, oil prices extended their decline for a fifth consecutive day. On September 23, Brent fell 0.63% to $66.15 per barrel, while WTI dropped 0.58% to $61.92.

Gold became the main safe haven for investors. Spot gold stabilized at $3,744.68 per ounce after hitting a record $3,759.02.

The crypto market, however, faced a major sell-off. According to CoinGlass, nearly $2 billion in positions were liquidated in one day, the largest event of the year. Market capitalization shrank by $150 billion, with Bitcoin briefly dipping below $112,000 and Ethereum under $4,150. The largest losses came from long ETH and BTC positions. Analysts view the correction as technical and see no signs of a break in the long-term bullish trend.

Bitcoin price also recorded its steepest daily drop of September as the new week opened, signaling a shift in sentiment after a month-long rally that had supported steady growth.

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