Nvidia Ignites Fresh Rally as Rate-Hike Bets Build – Asia Market Wrap
US equity futures rose as Nvidia’s bullish sales outlook revived confidence that the artificial intelligence rally has further to run, while bond markets weakened as traders increased bets on further interest-rate hikes.
Nasdaq 100 futures climbed 0.9% after Nvidia forecast strong revenue growth through 2028, with its shares rising 4.7% in after-hours trading. The upbeat outlook also lifted other AI-linked names, including Marvell and Sandisk, while European equity futures edged higher.
Asian stocks also advanced, with semiconductor makers SK Hynix and Samsung among the biggest contributors. South Korea’s Kospi, seen as a key barometer of AI investment, gained 1.3%.
However, elevated inflation continued to keep bond investors cautious. Treasuries declined across the curve after traders increased bets that the Federal Reserve may need to raise rates again, with two-year yields rising to 4.22% and markets fully pricing in a rate hike by December.
Nvidia’s forecast offered fresh evidence that spending on AI infrastructure remains strong, helping ease concerns over whether the investment boom can be sustained. The company expects revenue to grow by around 70% in fiscal 2028, well above analysts’ expectations for roughly 45% growth.
Elsewhere, gold rose 0.6% to around $4,620 an ounce, while Brent crude traded near $87.40 a barrel. The South Korean won strengthened after the central bank delivered a second consecutive rate hike, while bonds in Australia, New Zealand and Japan also fell as investors increased bets on further monetary tightening.
