Nvidia Gains on Meta Deal Amid Fragile US Tech Recovery

EUR/USD eased to around 1.1840 during Wednesday’s early European session, pressured by renewed demand for the US Dollar as investors position ahead of the release of the Federal Open Market Committee (FOMC) minutes later in the day. Market participants are looking to the minutes for further clarity on the policy outlook and the potential timing of future rate adjustments from the Federal Reserve.

The Greenback has found support from improving US growth expectations and firmer business sentiment. Additionally, market optimism that US President Donald Trump may adopt a less confrontational stance ahead of this year’s midterm elections has contributed to the Dollar’s resilience, creating headwinds for the pair.

On the geopolitical front, tentative progress in negotiations between the United States and Iran has the potential to lift broader risk sentiment, which could offer some support to the Euro. Iranian Foreign Minister Abbas Araghchi stated that both sides had reached an understanding on key “guiding principles” concerning Tehran’s nuclear program, though officials cautioned that further work remains.

Looking ahead, investor attention will turn to Friday’s preliminary Purchasing Managers’ Index (PMI) readings from the Eurozone and Germany. Stronger-than-expected results could help stabilize the shared currency in the near term, particularly if they point to renewed momentum in the region’s manufacturing and services sectors.

Bitcoin extended its pullback on Tuesday, dipping below the $68,000 mark as investors remained cautious ahead of major US economic releases and fresh signals from the Federal Reserve. The subdued tone underscored lingering risk aversion toward speculative assets, including cryptocurrencies.

Corporate heavyweight Strategy Inc disclosed that it purchased 2,486 Bitcoin for approximately $168.4 million over the past week, bringing its total holdings to 717,131 coins. The latest acquisition, executed at an average price of $67,710 per coin, marked the company’s third Bitcoin purchase in February and was financed through additional stock issuance.

Earlier this week, Strategy indicated it could withstand a Bitcoin price decline to as low as $8,000 while continuing to meet its debt obligations. However, the company’s approach has drawn scrutiny, particularly over potential shareholder dilution if equity issuance continues to fund further crypto accumulation.

With its sizable exposure, Strategy has become a focal point for broader market concerns. Investors worry that a prolonged downturn in Bitcoin prices could pressure the firm to liquidate part of its holdings to service debt, potentially exacerbating market volatility.

Broader cryptocurrency markets traded within a narrow range, with most major altcoins attempting to stabilize after steep recent losses. Risk appetite remained muted as traders positioned ahead of a series of key US macroeconomic releases. Market attention is centered on the minutes from the Fed’s January policy meeting, due later Wednesday.

Cryptocurrencies are particularly sensitive to shifts in US rate expectations, given their speculative profile and reliance on accommodative monetary conditions.

Oil prices moved lower on Tuesday as investor focus shifted to diplomatic negotiations surrounding two major geopolitical flashpoints.

A series of high-level meetings in Geneva drew market attention. US and Iranian officials met to discuss Tehran’s nuclear enrichment program, while separate US-brokered discussions took place between Russian and Ukrainian representatives.

According to reports, Washington and Tehran made progress during the talks. Iranian Foreign Minister Seyed Abbas Araghchi said the sides had reached a general understanding on a framework of “guiding principles” that could serve as the basis for drafting a potential agreement. The discussions involved US Special Envoy Steve Witkoff, with further detailed proposals from Iran expected in the coming weeks.

The renewed diplomatic momentum follows earlier rounds of talks between Washington and Tehran that had yielded limited progress. In recent weeks, oil markets had incorporated a higher geopolitical risk premium amid concerns that escalating tensions in the Middle East could disrupt global supply. Signs of engagement have helped temper some of those fears. On the Russia-Ukraine front, media reports indicated that negotiations concluded after roughly four and a half hours, with discussions set to resume the following day.

Separately, President Trump announced via Truth Social that a US trade agreement with Japan had officially “launched,” including an initial wave of investments under a broader $550 billion commitment from Tokyo. The first tranche reportedly includes energy and infrastructure projects spanning oil and gas operations in Texas, power generation in Ohio, and critical minerals development in Georgia. Trump emphasized the role of tariffs in facilitating the scale of the projects and highlighted their contribution to US energy dominance and supply chain security.

US equities closed marginally higher on Tuesday following a choppy trading session that saw major indices swing between losses and gains. Investors returned from a long holiday weekend searching for direction, with artificial intelligence-related uncertainty remaining a central theme.

Stocks initially opened mixed before sliding to session lows, then rebounding toward midday. Early weakness in artificial intelligence-linked names weighed on sentiment, though a recovery in major chipmakers and tech leaders helped lift the broader market.

Shares of NVIDIA and Broadcom rebounded during the session, alongside gains in Apple, pushing benchmark indices back into positive territory. However, segments of the AI ecosystem—particularly software—remained under pressure.

Attention now turns to a series of significant economic releases and the minutes from the January meeting of the Federal Reserve, due Wednesday. The central bank held rates steady at its late-January meeting, and investors will scrutinize the minutes for clues on the trajectory of monetary policy in 2026.

Industrial production and durable goods data are also scheduled for Wednesday, followed by December trade figures on Thursday. On Friday, markets will receive the Personal Consumption Expenditures (PCE) Price Index—the Fed’s preferred inflation gauge—alongside a preliminary reading of fourth-quarter GDP growth.

Corporate earnings remain a key driver of sentiment. Palo Alto Networks was set to report quarterly results after the close, with investors watching for guidance on how the cybersecurity firm is navigating rising competition from emerging AI-driven solutions. Later in the week, results are also expected from DoorDash, Walmart, and Wayfair.