Stocks largely shrugged off Nvidia Corp.’s slightly disappointing sales outlook, signalling that the ongoing market rally retains strong momentum.
Despite Nvidia’s shares dropping 3% in extended trading after CEO Jensen Huang noted high demand but a weaker-than-expected forecast, broader market indices showed resilience.
S&P 500 futures dipped only 0.1%, Nasdaq 100 futures fell 0.3%, and European stock futures edged up 0.1%, while Chinese chip stocks surged. A gauge of Asian shares remained flat, and the dollar weakened for a third day. Shorter-maturity Treasury yields ticked up slightly, with the two-year note at 3.62%. Oil prices declined as traders overlooked U.S. efforts to curb India’s purchases of Russian crude.
Analysts, including Andrew Jackson from Ortus Advisors, suggested Nvidia’s outlook was a minor setback, with expectations of continued strong demand for AI technology. In Asia, investors remained unfazed by Nvidia’s slowing growth, viewing the AI sector’s transformative potential as intact.
Chinese chipmakers such as Semiconductor Manufacturing International Corp. soared 12% amid reports of plans to triple AI chip production in 2025, driven by Huawei’s new fabrication plants.
Other sectors faced challenges: Meituan’s shares plummeted 11% in Hong Kong after warning of significant losses due to intense competition with Alibaba and JD.com, reporting a 97% drop in quarterly profit. Indian stocks fell 0.8% following new U.S. tariffs, and in Japan weaker demand at a two-year bond auction reflected caution over potential interest rate hikes by the Bank of Japan.
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Bitcoin rose 0.3% to $112,762.62
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Ether fell 0.8% to $4,557.59
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Spot gold fell 0.3% to $3,388.25 an ounce
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Crude fell 1% to $63.53 a barrel
