Global Market Today: Nasdaq futures, Asian stocks rise on Nvidia outlook
Contracts for the tech-heavy Nasdaq 100 Index climbed 1.2%, while those for the S&P 500 Index added 0.6% after Nvidia signaled strong sales growth in 2028. The company’s shares rallied 4.2% in extended trading. The upbeat outlook also lifted other AI stocks, including Marvell Technology Inc. and Sandisk Corp., in after-hours trading.
The optimism helped lift MSCI’s Asia Pacific stock gauge 0.6%, with South Korea’s Kospi Index — a bellwether for AI investments — leading the gains.
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Elsewhere, Brent crude extended its declines, trading around $87.20 a barrel as traders weighed diplomatic progress in the Middle East against rising Russia-Ukraine tensions. Still, caution lingered in bond markets as traders boosted bets on a Federal Reserve interest-rate hike this year after a key US inflation gauge remained above the Fed’s target.
Short-dated Treasuries underperformed in the US session and the dollar rose, with money markets fully pricing an increase by December.
Nvidia’s outlook offered fresh evidence that spending on AI infrastructure remains robust, easing concerns that the investment boom is losing steam. The upbeat forecast comes as investors increasingly scrutinize whether heavy AI spending can sustain earnings growth after a volatile stretch for technology stocks.“Nvidia shares are rising without waiting for analysts to revise their forecasts following the earnings release, suggesting the market is taking a somewhat positive view of the company’s outlook,” said Takashi Ito, a senior strategist at Nomura Securities.
Nvidia expects to grow revenue by approximately 70% in fiscal 2028, Chief Financial Officer Colette Kress said during a post-earnings conference call. Analysts have projected an increase of about 45% for that year, according to data compiled by Bloomberg.
