Nvidia Earnings Take Center Stage as Asian Stocks Gain on Falling Oil
Nvidia's earnings take center stage as Asian stocks are set to rise on falling oil prices, easing inflation concerns and lowering bond yields.
Asian stocks are anticipated to increase on August 26th as falling oil prices alleviate inflation concerns and result in lower bond yields, while investors await Nvidia's earnings report for insights into the future of artificial intelligence. Equity-index futures for Japan, South Korea, and Australia surged following a rebound in chipmakers, ending Nvidia's seven-day losing streak ahead of its earnings. The Nasdaq 100 rose by 0.6 percent, and the S&P 500 gained 0.3 percent on Tuesday.
Owing to the decline in US crude prices and Iran and Oman's agreement to restore shipping through the Strait of Hormuz, the yield on 10-year US Treasury notes dropped seven basis points to 4.63 percent, and the US dollar weakened. Gold also continued its upward trend for a sixth consecutive session, nearing $4,670 an ounce. Bitcoin maintained its position near $78,900.
Three significant events are slated to influence markets this week: Nvidia's earnings on Wednesday, the release of the US Personal Consumption Expenditures (PCE) price index, and Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole Symposium on Friday. Nvidia's performance is crucial as investors evaluate whether the AI rally can regain momentum after recent sell-offs.
Analyst Kyle Rodda from Capital.com noted that despite a series of strong results from tech companies, Nvidia's shares have declined for seven consecutive sessions, raising doubts about the sustainability of the AI boom.
Investors anticipate Nvidia's quarterly revenue to nearly double from a year ago to around $92 billion, which would surpass many competitors' annual revenue and serve as a significant test for AI's profitability. Mark Malek of Siebert Financial expressed confidence in Nvidia's operations, stating, "We're anticipating good news here, but so is everybody."
After assessing Nvidia's results, attention will shift to the Jackson Hole Symposium, where Warsh is set to deliver his first major speech as Fed chair on Friday. Investors will be watching for indications of his assessment of the US economy and the future direction of interest rates. Recent economic data has heightened uncertainty regarding the Fed's policy outlook, with US consumer confidence falling to a seven-month low in August due to deteriorating expectations for business conditions and the labor market.
The PCE price index, expected on Wednesday, will offer additional insight into US inflation, which the Fed closely monitors when determining monetary policy.
Written by urgent.news from Tempo.co English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
