Nvidia delivered another strong earnings report, sending its shares more than 4% higher in after-hours trading and lifting broader market sentiment. The chipmaker reported quarterly revenue that more than doubled and exceeded analyst expectations by the widest margin in two years, reinforcing optimism around artificial intelligence spending and demand for advanced semiconductors.
Nvidia Boosts US Market Sentiment
Nvidia’s stronger-than-expected results provided a fresh catalyst for US technology stocks. US stock futures moved sharply higher as investors responded to the company’s earnings and positive outlook.
The results have renewed confidence in the strength of AI-related investment, with Nvidia remaining one of the key companies benefiting from continued spending on data centres, chips and artificial intelligence infrastructure.
The performance could also support broader indices such as the Nasdaq 100, where technology stocks have a significant influence.
Asian Markets Follow the Technology Rally
Asian equities were mostly higher following Nvidia’s results.
South Korea’s Kospi gained around 1.8%, while Japan’s Nikkei rose approximately 0.3%. The gains reflected improved sentiment toward the global technology sector and expectations that strong AI demand could continue supporting semiconductor companies.
Investors will now assess whether Nvidia’s strong outlook can translate into broader gains across global technology and equity markets.
Oil Prices Continue to Ease
Crude oil prices extended their decline on Thursday as progress between Iran and Oman over the Strait of Hormuz raised hopes that disruptions to energy supplies could gradually ease.
Brent crude fell around 0.7% to $87.20, while WTI declined approximately 0.56% to $81.77.
A potential reopening of the Strait of Hormuz could reduce concerns about supply disruptions and place additional downward pressure on oil prices. Lower energy costs could also help ease inflationary pressures, although geopolitical developments remain an important risk for the market.
China’s Industrial Profits Slow
China’s industrial sector showed signs of continued pressure, with industrial profits rising 11.2% year-on-year in July.
Although profits remained positive, the pace represented the slowest growth recorded so far this year. Weak domestic demand and a broader economic slowdown continue to weigh on manufacturers.
Investors are watching Chinese economic data closely for signs of how weakening demand could affect global commodities, equities and broader economic growth.
Gold Consolidates Below $4,700
Gold remains below its recent high near $4,700 as traders await further guidance on US monetary policy.
Recent PCE inflation data showed that price pressures remain elevated, with headline PCE at 3.7% year-on-year and core PCE at 3.3%. Persistent inflation could strengthen expectations that the Federal Reserve may need to keep interest rates higher for longer, potentially limiting gold’s upside.
However, lower Treasury yields are providing some support for the precious metal. The US Treasury’s bond-buyback strategy has contributed to the decline in yields, while hopes for a US-Iran ceasefire and the reopening of the Strait of Hormuz are also influencing market sentiment.
The $4,700 level remains an important technical and psychological area for gold, with a sustained break above it potentially signalling renewed bullish momentum.
Bitcoin Holds Above $78,000
The cryptocurrency market remains relatively constructive despite the latest inflation data.
Bitcoin continues to hold above $78,000, showing resilience even as elevated inflation keeps expectations for Federal Reserve policy in focus.
The ability of Bitcoin to maintain its recent gains suggests that investor appetite for risk assets remains relatively strong, although monetary policy expectations and movements in the US dollar could continue to influence the cryptocurrency’s next move.
Markets Await Jackson Hole
The next major focus for investors is Fed Chair Kevin Warsh’s speech at the Jackson Hole symposium on Friday.
With inflation still elevated, markets will be looking for clues about the Federal Reserve’s interest-rate path and whether policymakers could deliver a rate hike before the end of the year.
A hawkish tone could support the US dollar and Treasury yields while putting pressure on gold and other risk-sensitive assets. A more dovish message could have the opposite effect, potentially supporting gold, equities and cryptocurrencies.
Market Outlook
Nvidia’s strong earnings have provided a significant boost to global technology sentiment, while falling oil prices and easing concerns around the Strait of Hormuz are helping broader markets. At the same time, persistent inflation remains a key challenge for investors.
