Rise of Technology Stocks in Asia Ahead of Nvidia's Results Release

SadaNews - Stocks declined in late trading after Nvidia's results disappointed investors who were anticipating more from the leading company in artificial intelligence that has fueled the rising market.

A $660 billion exchange-traded fund tracking the S&P 500 fell after regular trading hours. The shares of the world’s largest chipmaker by market value dropped after it provided tepid revenue forecasts, raising concerns that the massive spending surge on artificial intelligence is slowing down.

Revenue Forecasts and Stock Pressure

The company stated that sales are expected to reach around $54 billion in the third fiscal quarter, which extends until October. While this figure was in line with Wall Street's average estimates, some analysts expected revenues to exceed $60 billion. The forecasts excluded revenue from data centers in China.

For a stock priced perfectly, this was enough to ignite a decline in its value. Nvidia has added nearly $2 trillion to its market value since early April, trading near record levels, amid optimism over the AI wave.

Performance of Other Markets

During regular trading hours, the S&P 500 index posted slight gains but closed at a new record level.

Short-term treasury yields continued to rise amidst bets on monetary easing by the Federal Reserve.

The yield on 30-year bonds remained steady after President Donald Trump recently announced the dismissal of Federal Reserve Board member Lisa Cook amid allegations of mortgage misconduct.

Chief Economic Advisor Kevin Hassett stated that Cook should take a leave while her situation within the board is being adjudicated.