(Bloomberg) — US equity futures rose following robust results from Nvidia Corp., while Asian stocks slipped at the open.
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Shares in Japan, South Korea and Australia all fell alongside Hong Kong equity futures.
Contracts for the S&P 500 and Nasdaq 100 indexes both climbed in the wake of post-market results for Nvidia that sent its shares as much as 7% higher in after-hours trading. The S&P 500 dropped 0.3% Wednesday, while the Nasdaq 100 was little changed.
The chip giant said second-quarter revenue will be about $28 billion — beating estimates. The company also announced a 10-for-1 stock split and boosted its quarterly dividend by 150% to 10 cents a share.
“Even in the face of huge expectations, the company once again stepped up and delivered,” said Ryan Detrick at Carson Group, who highlighted strong data center revenue.
Treasuries opened little changed in Asian trading after a Wednesday drop pushed yields higher at the front end of the curve. The selling sent the policy-sensitive two-year year yield four basis points higher as the latest Federal Reserve minutes showed officials remain in no rush to cut rates.
“Many” Fed officials expressed uncertainty over the degree to which policy is restraining the economy — but the minutes also noted policy “was seen as restrictive.”
In currencies, a gauge of dollar strength held a rally from the prior session, when it touched a one-week high. The yen was little changed early Thursday after falling against the greenback to the lowest level since late April.
A busy day of economic reports in Asia includes inflation figures for Singapore later today, price expectations for Australia and China’s April Swift payments data. South Korea will also hand down a monetary policy decision with markets in Indonesia closed. Meanwhile, Singapore gross domestic product rose slightly in the first quarter compared with a year earlier, beating estimates.
Tech Profits
US tech earnings so far have been among the strongest in the first-quarter reporting season, with revisions in the sector outpacing the rest of the market. However, earnings results also suggest a broadening market, according to Solita Marcelli at UBS Global Wealth Management.
“We stay positive on the AI trend and maintain our preference for big tech given the advantageous market positions,” she said. “We forecast global tech earnings growth of 20% and 16% this year and next, respectively, led by the semiconductor sector where we see investment opportunities.”
To Tom Essaye at the Sevens Report, Nvidia is still the most-important single stock in the market. But more importantly, the market broadening is an ongoing phenomenon and one we think can continue as long as Goldilocks is here.
“Ensuring balanced exposure to that broadening is one way we think investors can continue to outperform in 2024,” he noted.
Goldman Sachs Group Inc. Chief Executive Officer David Solomon said he currently expects the Fed won’t cut rates this year amid an economy that’s proved more resilient thanks to government spending.
Elsewhere, Anglo American Plc agreed to enter talks with larger rival BHP Group after rejecting a third proposal worth about $49 billion. The US Justice Department will sue Live Nation Entertainment Inc. for antitrust violations related to Ticketmaster’s control of concert ticket sales, according to people familiar with the case.
Gold edged higher after suffering its largest one-day decline since April on Wednesday. The precious metal dropped 1.7% to around $2,379 following the Fed’s meeting minutes that indicated rate cuts may come later than previously expected. West Texas Intermediate slipped Thursday, on track for its fourth-consecutive daily decline. Copper prices fell sharply on signs of weakening demand.
Key events this week:
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Eurozone S&P Global services and manufacturing PMIs, consumer confidence, Thursday
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G-7 finance meeting, May 23-25
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US new home sales, initial jobless claims, Thursday
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Fed’s Raphael Bostic speaks, Thursday
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US durable goods, consumer sentiment, Friday
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Fed’s Christopher Waller speaks, Friday
Some of the main moves in markets:
Stocks
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S&P 500 futures rose 0.2% as of 9:04 a.m. Tokyo time
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Hang Seng futures fell 0.7%
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Japan’s Topix rose 0.1%
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Australia’s S&P/ASX 200 fell 0.5%
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Euro Stoxx 50 futures fell 0.4%
Currencies
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The Bloomberg Dollar Spot Index was little changed
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The euro was little changed at $1.0827
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The Japanese yen was little changed at 156.73 per dollar
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The offshore yuan was little changed at 7.2532 per dollar
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The Australian dollar was little changed at $0.6621
Cryptocurrencies
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Bitcoin fell 0.2% to $69,245.38
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Ether fell 0.2% to $3,741.7
Bonds
Commodities
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West Texas Intermediate crude fell 0.4% to $77.24 a barrel
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Spot gold rose 0.2% to $2,382.60 an ounce
This story was produced with the assistance of Bloomberg Automation.
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