GLOBAL MARKETS-Stocks ride the AI rush and gold gains; Powell speech in focus

By Canan Sevgili and Tom Wilson

LONDON, Sept 23 (Reuters) - Global shares rose on Tuesday as AI optimism boosted tech stocks, while expectations of U.S. interest rate cuts pushed gold to record highs and investors awaited remarks from Federal Reserve Chair Jerome Powell.

The MSCI world equity index .MIWD00000PUS, which tracks shares in 49 countries, edged up 0.1%, driven by advances in Europe and Asia.

Wall Street shares were set to hold on to gains after a tech-driven rally pushed indexes to record closing highs on Monday, for the third straight session.

Powell's comments, due later in the day, could play a key role in shaping interest rate expectations at a time when investors are weighing mixed signals from the Fed, with some officials advocating gradual cuts to keep inflation in check.

U.S. stock index futures were steady, with S&P 500 E-minis EScv1 mostly unchanged and Nasdaq 100 E-minis NQcv1 making small gains of 0.3%.

On Monday, Nvidia .NVDA announced it would invest up to $100 billion in OpenAI, with the first data centre gear to be delivered in the second half of 2026. The stock hit a record high, its gains underscoring its wider importance.

"It may not be an exaggeration to write that NVIDIA – the key supplier of capital goods for the AI investment cycle - is currently carrying the weight of U.S. economic growth," said George Saravelos, global head of FX research at Deutsche Bank.

Gold XAU= hit a record above $3,784 per ounce, and was nearly 10% higher for the month so far. GOL/

Chris Weston, head of research at broker Pepperstone, noted that investors were hedging their exposure to stocks by buying gold.

Euro zone bond yields, meanwhile, were little changed after the release of mixed business activity data from the bloc and heavy government bond issuance. Germany's 10-year yield DE10YT=RR, the euro zone benchmark, was little changed after the data at 2.745%, just below a two-week high of 2.762% reached on Monday.

MIXED MESSAGING FROM FED, DOLLAR CONTINUES TO SEESAW

The EURO STOXX 600 .STOXX, which has tended to lag in the rush to tech stocks, gained 0.5%, powered by utilities shares. German .GDAXI and French .FCHI indexes climbed 0.3% and 0.7% respectively.

Earlier, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed up 0.1%, and was 5.5% higher for the month so far. South Korean stocks .KS11 closed up 0.51%, while Chinese blue chips .CSI300 remained steady.

Global equities have been supported by expectations of further Fed rate cuts after it eased policy last week.

Futures suggest that there is around a 90% chance of a 0.25% U.S. rate cut in October and a 75% probability in December. 0#USDIRPR

Markets remain dovish despite mixed messaging from the Fed itself. New Fed Governor Stephen Miran called for sharp rate cuts on Monday, while three colleagues urged caution on inflation.

In currencies, the dollar continued its recent seesaw pattern, easing overnight after three sessions of gains.

The euro was steady at $1.179 EUR=EBS, after bouncing from a $1.1726 low on Monday, while the dollar had faded to 147.72 yen JPY=EBS from a high around 148.37.

Sweden's crown SEK= gained 0.4% to 9.31 per dollar after the central bank cut interest rates to 1.75% and said rates were expected to remain on hold for some time.

Oil prices edged higher on Tuesday, even as investors weighed the global supply outlook after Iraq and Kurdish regional governments reached a preliminary agreement to restart an oil pipeline. O/R

Brent crude LCOc1 gained 0.9% to $67.16 a barrel, while U.S. crude CLc1 added 0.7% to $62.99 per barrel.

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