The chipmakers’ artificial intelligence business sees exploding profits
US equities ended higher on Wednesday as a decline decline in yields buoyed sentiment among investors. The benchmark 10-year Treasury yield dropped more than 11 basis points to 4.21%, retreating from 4,35%, its highest level since 2007 registered at the start of the week. The Dow Jones Industrial Average closed 0.5% higher, the S&P 500 gained 1.1%, and the tech-heavy Nasdaq Composite climbed 1.6% to notch the third straight day of gains. In individual stocks, Nvidia shares jumped on hopes of stronger quarterly results. The report after the bell showed that the company beat Wall Street’s lofty expectations, with profits exploding thanks to the chipmakers’ artificial intelligence business.
Following suit, Asian stocks advanced on Thursday. Japan’s Nikkei 225 gained 0.72%, Australia’s S&P/ASX 200 added 0.47%. South Korea’s Kospi jumped 1.28% after the Bank of Korea’s central bank left the base rate unchanged at 3.50%. Hong Kong’s Hang Seng surged nearly 2.0%, while the Shanghai Composite rose just 0.12%. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 1.7% as investors cheered Nvidia’s bullish outlook. Still, the index is however down more than 8% so far this month due to the weakness in China’s economy.
As the mood turned more positive after the gains in Wall Street yesterday, European markets opened higher today. As the general mood remains more buoyed due to Nvidia’s strong earnings, tech shares are leading the gains in the European region as well. Now, investor focus shifts towards a major event of the week for markets. It is a speech by U.S. Federal Reserve Chair Jerome Powell at a Jackson Hole. The event could bring more volatility across the markets.
In currency markets, the US dollar holds steady after yesterday’s short-lived rally towards fresh June highs. The USD index briefly peaked just below the 104.00 figure before retreating amid profit-taking as Treasury yields declined and risk demand intensified. Still, despite the rallying stocks, the greenback stays afloat in anticipation of Powell’s speech that could push the dollar to fresh local highs if the Fed governor delivers a hawkish message ahead of the weekend.