Nvidia earnings lift tech stocks as investors await Fed outlook

TDT | AFP

Email: mail@newsofbahrain.com

AI chip giant reports stronger-than-expected revenue, while inflation concerns keep broader markets cautious

Technology stocks moved higher on Thursday after Nvidia reported stronger-than-expected earnings, although gains across wider markets remained limited as investors awaited signals on the future direction of US interest rates.

Nvidia, the world's largest company by market value, reported second-quarter revenue of around $96 billion, more than double its revenue from a year earlier. The company also issued a strong forecast for the current quarter, sending its shares sharply higher and boosting investor confidence in continued demand for artificial intelligence technology.

The gains spread to Asian semiconductor companies, with SK hynix, Samsung and Kioxia also recording advances.

However, persistent inflation and rising government bond yields continued to limit market optimism. The Federal Reserve's preferred inflation gauge remained elevated in July, raising concerns that interest rates could remain higher for longer.

Investors are now focused on the Federal Reserve chairman's speech at the annual central bankers' conference in Jackson Hole, Wyoming, where markets are looking for clues about monetary policy.

Oil prices also recovered after recent declines as investors monitored diplomatic efforts surrounding the Strait of Hormuz. Shipping traffic through the strategic waterway remains significantly below normal levels, keeping supply concerns in focus.

On Wall Street, the Nasdaq led gains, while the S&P 500 rose modestly and the Dow was broadly unchanged. European markets were mixed.