Nvidia Reassures Markets on AI Demand as Focus Turns to Fed – Europe Market Wrap
US stock futures climbed as Nvidia’s bullish outlook reinforced confidence that the AI investment boom still has further to run, easing fears that the rapid expansion in artificial intelligence spending is beginning to lose momentum.
Nasdaq 100 futures jumped 1.1%, while S&P 500 futures gained 0.5%. Nvidia surged 6.5% in premarket trading after forecasting fiscal 2028 revenue growth well above expectations. Salesforce also rallied 10% after its outlook reassured investors that the software giant can remain competitive in the AI era.
Technology sentiment was further supported by a $31 billion joint venture between Kioxia and Sandisk to expand flash-memory production, adding to optimism across the semiconductor sector.
Treasuries edged lower, pushing the 10-year yield up two basis points to 4.67%. The dollar was little changed, while gold hovered near $4,600 an ounce.
Nvidia’s upbeat forecast helped calm concerns that parts of the AI trade had become overheated. Chief Executive Officer Jensen Huang said demand for the company’s AI accelerators continues to grow, underlining the strength of spending on infrastructure needed to train and run AI models.
Elsewhere, the picture was more mixed. Europe’s Stoxx 600 declined as weakness in consumer shares outweighed gains in technology, while HP fell on concerns over demand for PCs and printers. Wheat prices climbed to their highest level since July 2023, keeping inflation risks in focus alongside elevated energy costs.
Attention now turns to the Jackson Hole symposium, where Fed Chair Kevin Warsh will deliver his first major speech in the role on Friday. Investors will be watching closely for clearer signals on the policy outlook after recent criticism over the lack of detail surrounding his views on the economy.
