Shares Stall Ahead of Nvidia Earnings as US Dollar Climbs on Strong Economic Data

Global stock markets showed mixed signals on Wednesday as investors grew cautious ahead of Nvidia’s highly anticipated earnings report later in the day. Shares dipped slightly, with major futures indexes including Nasdaq and S&P 500 easing modestly. Market optimism about easing trade tensions between the United States and Europe appeared to wane, while global bond markets steadied after recent volatility, though Japan’s 40-year government bond auction revealed weak demand amid ongoing fiscal concerns.

Positive economic data from the United States helped prop up the dollar, which rose against a basket of currencies. U.S. consumer confidence beat expectations ahead of key jobs figures due Thursday, reinforcing a generally upbeat view of the American economy. The euro slipped in response, and the dollar index extended its gains from the previous day, reflecting investor confidence in U.S. growth prospects.

Much of the market’s focus centered on Nvidia, the leading AI chipmaker, whose shares surged over 4% on Tuesday. Nvidia is the last of the “Magnificent 7” tech giants to report earnings this quarter, with analysts expecting a strong first-quarter revenue increase of over 66%, totaling approximately $43.3 billion. Market experts suggest that if Nvidia beats estimates on sales and profit margins, it could trigger a renewed rally in tech stocks.

Regional markets showed a mixed performance: Japan’s Nikkei gained for the fourth consecutive session, while China’s CSI300 saw modest gains and Hong Kong’s Hang Seng Index declined slightly. Australian shares slipped following inflation data that slightly exceeded expectations, prompting a dip in the Australian dollar. Meanwhile, bond yields in Japan rose as investors showed tepid interest in long-term government debt.

Commodity prices experienced modest changes, with oil prices climbing slightly after the U.S. banned Chevron from exporting Venezuelan crude, potentially tightening global supply. Brent crude and U.S. crude futures both ticked upward, while gold prices stabilized following a recent drop. Overall, the market remains in a state of cautious anticipation ahead of key corporate earnings and economic reports.

Source: Reuters