Asian shares slid on Thursday, following Wall Street futures lower, after Nvidia’s earnings report disappointed some optimistic investors. The dollar steadied while the Treasury yield curve neared a positive shift.
Shares of the chipmaker fell 6% in after-hours trading, weighing on shares of other chipmakers, Reuters reported on Thursday.
“The revenue and gross margin forecast for the current quarter were not far from analysts’ expectations and failed to live up to a recent history of trouncing Wall Street’s targets, overshadowing a beat on second-quarter revenue and adjusted earnings as well as the unveiling of a $50 billion share buyback,” the agency noted. “In the last three consecutive quarters, Nvidia recorded revenue growth of more than 200%, and the company’s capacity to surpass estimates is at increasingly greater risk as each success prompts Wall Street to raise its targets even higher.”
In Europe, markets are set for a mixed opening: EUROSTOXX 50 futures are down 0.2%, while FTSE futures are up 0.2%. This comes ahead of inflation data from Germany and Spain, with potential misses reinforcing the case for further policy easing in the region.
Weekly jobless claims in the US are expected later today, gaining attention due to the Federal Reserve’s focus on the health of the labour market.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.3%, dragged down by technology stocks. The Nikkei eased 0.2%, and South Korea’s market dropped 1%. Nvidia’s third-quarter revenue forecast of $32.5 billion surpassed Wall Street’s expectations yet failed to meet the high hopes of some investors, leading to a nearly 7% decline in its after-hours trading.
Consequently, Nasdaq futures fell 0.7%, and S&P futures dropped 0.3%. Nvidia’s chip contractor, TSMC, fell 1.8%, pulling the broader Taiwanese market down by 0.7%.
