As Nvidia Allays Worries About AI Froth, Stocks Rise – Asia Market Wrap
Stocks rose after Nvidia issued a strong revenue estimate, alleviating concerns about a potential bubble in the AI business, which had previously roiled global markets.
Nvidia rose 5% in post-market trading after releasing profits, boosting other AI stocks as well. S&P 500 futures surged 1.3%, while Nasdaq 100 contracts rose 1.9%, as relief from the significant risk event bolstered mood after a week of volatility. European shares were also expected to rise. Alphabet rose following a slew of positive reviews for the recently released version of its Gemini AI model.
The optimism lifted Asian shares for the first time in five days, with gains for Japan’s Nikkei and South Korea’s Kospi – a poster child of the AI boom and one of the top-performing markets globally this year. Bitcoin rose to trade above $92,000.
In other news, the Dollar remained generally stable after registering its largest increase since late September. Treasuries held steady after sliding down the previous session, as bets on the Fed cutting interest rates dropped on a bleak labour market outlook.
Meanwhile, Japan’s Finance Minister Katayama emphasised the need to watch market movements with BoJ’s Ueda and Growth Strategy Minister Kiuchi, as the officials reaffirmed a collaborative agreement aimed at eliminating deflation and creating sustainable growth.
