Global Stocks Mixed as Fed Signals Divide; Alibaba Soars on $53bn AI Push

Equities traded mixed on Wednesday after a weak Wall Street session, where concerns over stretched valuations were compounded by conflicting signals from the US Federal Reserve on the path of interest rates.

Chinese tech giants led gains, with Alibaba surging more than nine percent after CEO Eddie Wu announced plans to ramp up artificial intelligence spending by about $53 billion. The company also projected a tenfold increase in energy consumption at its global data centres by 2032, as it prepares for the era of artificial superintelligence. Tencent, JD.com, and Meituan also advanced, boosting Hong Kong and Shanghai markets.

In contrast, US markets slipped Tuesday as tech leaders including Nvidia and Amazon pulled major indexes off recent highs. The pullback came after months of gains driven by AI optimism and expectations of multiple Fed rate cuts this year.

However, investors were unsettled by Fed Chair Jerome Powell’s warning that there is “no risk-free path.” He cautioned that easing too quickly could undermine progress on inflation, while keeping rates high for too long risked weakening the labour market. Other Fed officials added to the uncertainty: Raphael Bostic and Austan Goolsbee flagged inflation risks, while Michelle Bowman urged immediate cuts to support deteriorating job conditions.

Markets are now awaiting Friday’s release of the personal consumption expenditure (PCE) index — the Fed’s preferred inflation gauge — along with key US employment data next week.

Across Asia, Tokyo, Jakarta, Bangkok, and Wellington advanced, while Sydney, Seoul, Singapore, Taipei, and Manila slipped. European stocks — including London, Frankfurt, and Paris — opened lower.

Key Market Figures

Tokyo – Nikkei 225: UP 0.3% at 45,630.31 (close)

Hong Kong – Hang Seng Index: UP 1.4% at 26,515.49

Shanghai – Composite: UP 0.8% at 3,853.64 (close)

London – FTSE 100: DOWN 0.1% at 9,218.56

Euro/dollar: DOWN at $1.1790 from $1.1816

Pound/dollar: DOWN at $1.3497 from $1.3524

Dollar/yen: UP at 148.04 from 147.66

Euro/pound: DOWN at 87.35 pence from 87.37

WTI Crude: UP 0.1% at $63.46 per barrel

Brent Crude: FLAT at $66.98 per barrel

New York – Dow: DOWN 0.2% at 46,292.78