Asian Stocks Likely to Dip Amid Nvidia’s Anticipated Earnings: Market Overview
Asian stock markets are expected to open lower following a tepid trading session on Wall Street, as investors eagerly await Nvidia Corp.’s earnings for insights into the sustainability of the AI-driven market boom. Futures for key indexes in Tokyo, Hong Kong, and Sydney, along with US futures, indicated bearish momentum early Wednesday.
Nvidia, the $3.2 trillion semiconductor giant, is set to announce its earnings post-Wednesday session. Analysts and investors are keen to see if Nvidia will meet high expectations, which could lead to significant market volatility. Options trading suggests a potential near 10% stock movement in either direction post-earnings. The stock has soared approximately 160% this year and has surged 1,000% from its October 2022 lows.
Chris Senyek of Wolfe Research notes that Nvidia’s performance will be crucial ahead of a pivotal US payrolls report on September 6. "We remain bullish, but near-term risks are skewed to the downside," Senyek commented, highlighting seasonal weaknesses and election-year volatility.
Other market moves saw Bitcoin dipping below $60,000 amidst a broader cryptocurrency retreat, with Ethereum also experiencing significant declines. Meanwhile, oil prices rose.
The S&P 500 inched higher to around 5,625 on Tuesday, while the Nasdaq 100 advanced by 0.3%. The semiconductor index increased by 1.1%, with Nvidia climbing 1.5%. However, Super Micro Computer Inc. dropped 2.6% following a short-sell report by Hindenburg Research. Treasury yields also saw a slight increase.
Despite uncertainties surrounding Federal Reserve policies, economic conditions, and the US presidential race, AI investments continue to be pivotal on Wall Street. Nvidia’s earnings are expected to further clarify the outlook for AI spending across the tech industry. Analysts predict Nvidia’s revenue to surge by over 70% for the current quarter.
US consumer confidence rose to a six-month high in August, buoyed by positive economic and inflation perspectives. However, underlying risk premiums remain elevated despite recent market recoveries and Powell’s dovish stance.
Jonas Goltermann of Capital Economics suggests that if the US economy achieves a soft landing and AI enthusiasm rebounds, the S&P 500 could reach 6,000 by year-end.
This summary was produced with assistance from Bloomberg Automation and Rita Nazareth. For ongoing updates, follow business news on Live Mint.
Original Story https://www.livemint.com/news/world/asian-stocks-to-slip-as-us-holds-breath-for-nvidia-markets-wrap-11724799622532.html
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