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Tech stocks continue to climb ahead of Nvidia earnings

The most important technology stock indices, the Nasdaq-100 and Nasdaq Composite, reached new all-time highs on Tuesday, just one day before Nvidia reports quarterly earnings. Trading in Asia was mixed as there was little macroeconomic data outside of Japan to move markets.

Shane Strowmatt, LGT
Temps de lecture
5 minutes
© Shutterstock

In New York, The Nasdaq-100 gained 0.2% to finish Tuesday at 18,713.80 points, a new all-time high. The Dow Jones Industrial closed 0.2% higher and the S&P 500 was up 0.3%. The test for stock markets’ recent record run comes late Wednesday, when Nvidia releases quarterly earnings. The chipmaking giant has become the poster child for the artificial-intelligence-driven stock rally this year as its chips are used for AI-related applications. The company added the largest amount to its market capitalisation of any stock in a single trading day when it last reported earnings in February.

In the Asia-Pacific region, stock markets were mixed on Wednesday. The Reserve Bank of New Zealand kept interest rates unchanged for the seventh time in a row and New Zealand’s S&P/NZ50 gained 0.5% on Wednesday. In Tokyo, the Nikkei 225 lost 0.8% after exports increased less than market participants had expected. In April exports were up 8.3% and the trade deficit came in at JPY 452.5 billion. Also released on Wednesday, the Tankan business survey showed sentiment at large firms improved a bit during the month of May, with sentiment for manufacturers coming in at +9. In South Korea, the Kospi was trading marginally higher. In Australia, the S&P/ASX 200 gained 0.1%. Hong Kong’s Hang Seng Index was 0.4% higher, while the Shanghai Composite was trading slightly lower.

In Europe, producer prices for industrial products in Germany fell 3.3% in April, when compared with the same month of the previous year. The main driver of falling prices continued to be lower energy prices with energy costs down 8.2% from April 2023. Excluding energy, producer prices were down 0.6% on the year. Producer prices are often indicative of consumer price changes in the future as companies pass on higher or lower prices to customers. Falling producer prices in Europe’s largest economy will be welcome by the European Central Bank, which is expected to begin cutting rates this summer. Germany’s DAX lost 0.2% on Tuesday and the Euro Stoxx 50 was down 0.6%.

Corporate news in focus: Quarterly figures from Nvidia.

Economic data in focus: UK Consumer Price Index, European Central Bank President Christine Lagarde speaks, Bundesbank monthly report, US existing home sales, FOMC meeting minutes.


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

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