LGT Navigator

Nvidia beats forecasts, lifts global tech stocks

Nvidia sparked a rally in technology shares after reporting third-quarter results and an outlook that exceeded market expectations late Wednesday, fuelling optimism across global equity markets despite lingering concerns over an AI bubble. Asian equities advanced on Thursday, while US indices closed higher ahead of Nvidia’s release; in contrast, Hong Kong and mainland Chinese stocks lagged as tech sentiment cooled locally. Gold traded near USD 4,070 an ounce on Thursday after more than 1% gains earlier in the week, as investors reduced expectations for a US Federal Reserve rate cut at its December meeting following divided views in the latest policy minutes. Bitcoin rebounded slightly, trading around USD 92,100.

  • Date
  • Auteur Shane Strowmatt, Senior Investment Writer
  • Temps de lecture 5 minutes

Navigator_Nvidia

Nvidia reported fiscal third-quarter revenue of USD 57.01 billion and adjusted earnings per share of USD 1.30 on Wednesday after the bell, surpassing market expectations, with net income rising 65% to USD 31.91 billion from the same period last year. The company issued stronger-than-anticipated guidance, forecasting about USD 65 billion in revenue for the fourth quarter, driven by robust demand for its Blackwell AI chips and record USD 51.2 billion in data centre sales. Shares gained more than 5.5% in after-hour trading, as investors welcomed indications of accelerating growth despite concerns over possible market saturation in artificial intelligence. Broader US stock indices posted modest gains ahead of the results on Wednesday, with the Dow Jones Industrial rising by 0.1% to 46,138.77 points, while the S&P 500 and tech-focused Nasdaq 100 increased by 0.4% and 0.6%, respectively.

Fed minutes reveal deep split on rate cuts

Minutes released Wednesday showed US Federal Reserve officials divided over October’s quarter-point rate cut, with many voicing doubts about the need for further reductions this year, despite approval at the latest meeting. The minutes indicated skepticism about a December rate cut, as a majority of policymakers favoured keeping rates steady at least through 2025, though some argued another decrease could be warranted if economic conditions weakened. Further complicating the outlook was macroeconomic data released Thursday. The number of Americans receiving unemployment benefits increased by 10,000 to a seasonally adjusted 1.957 million in the week ended October 18, up from 1.916 million in mid-September, according to figures released on Tuesday. This rise in continuing claims points to elevated unemployment in October and reflects subdued hiring amid ongoing economic uncertainty, while the recent government shutdown delayed official labour market reports. Meanwhile, the US trade deficit narrowed by 23.8% to USD 59.6 billion in August as imports declined 5.1% to USD 340.4 billion, while exports rose slightly by 0.1% to USD 280.8 billion, according to figures released on Wednesday with a delay due to the shutdown.

Asian tech stocks surge after Nvidia results, China lags

Most Asian equity markets advanced strongly on Thursday, led by gains in technology stocks following Nvidia’s upbeat quarterly earnings and positive outlook, which helped allay fears of an AI-driven bubble. Japan’s Nikkei 225 index rose 2.7% and South Korea’s KOSPI was up 1.9%, with semiconductor firms such as Samsung Electronics and SK Hynix rallying in response to robust demand in the sector. Australia’s S&P/ASX 200 climbed 1.2%. Hong Kong’s Hang Seng Index lagged, falling 0.3%, as weakness in Xiaomi and electric vehicle stocks outweighed gains in other local tech names. Mainland China’s CSI 300 was down 0.3%.

China keeps key lending rates unchanged

The People’s Bank of China left its benchmark loan prime rates steady for the sixth consecutive month on Thursday, holding the one-year rate at 3% and the five-year rate at 3.5%, in line with market forecasts. The central bank has adopted a less accommodative policy stance after last month’s trade deal with the US reduced immediate pressure for further easing, despite October data signalling a slowdown in exports and retail sales. New bank lending fell sharply in October, reflecting continued caution from businesses and households amid economic and trade uncertainties. Monetary policy easing is now likely to be delayed to the first quarter of 2026 as officials prioritise stability over rapid stimulus.

Euro-area inflation slows to 2.1%

Eurostat data released on Wednesday showed the euro area annual inflation rate declined to 2.1% in October, compared with 2.2% in September and 2.0% in October last year. Inflation in the wider European Union dropped to 2.5%, down from 2.6% in September and 2.3% a year earlier. The largest upward influence on euro-area inflation came from services, followed by food, alcohol and tobacco, while energy contributed negatively. European stock markets closed little changed on Wednesday. The Euro Stoxx 50 managed a 0.1% gain, while Germany’s DAX slipped 0.1% and France’s CAC 40 declined by 0.2%. The Swiss Market Index outperformed the region, rising 0.5% on the day.

UK inflation slows to 3.6% in October

British consumer price inflation eased to 3.6% in October, down from 3.8% in September according to data released on Wednesday, marking the first deceleration since May and providing some support for expectations of a December Bank of England rate cut. The slowdown was mainly driven by lower household energy costs and cheaper hotel stays, although food and drink inflation accelerated to 4.9%. Services inflation, closely watched by the central bank, fell to 4.5%, its lowest since December last year. Finance minister Rachel Reeves stated she would introduce targeted measures in next week's budget to reduce living costs, while some economists linked last year's fiscal changes to higher current inflation.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Intuit and Walmart.

Economic data in focus: Swiss trade balance (08:00), Bundesbank monthly report (12:00), US weekly initial jobless claims (14:30), US nonfarm payrolls (14:30), US unemployment rate (14:30), Philadelphia Fed Manufacturing Index (14:30), euro-area consumer confidence (16:00), US existing home sales (16:00).

LGT helps you make informed investment decisions

Global economic and market trends at a glance

You can also follow us on Facebook or LinkedIn – or visit Insights and discover interesting background articles. If you have questions, a consultant from the bank will be happy to help you.

Imprint
Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.