Stocks steady as traders shake off Nvidia doubts: Markets Wrap

by Andre Janse van Vuuren and Julien Ponthus 

Stocks shook off an initial drag from Nvidia Corp.’s sales outlook missing lofty expectations, indicating that momentum behind the record-breaking rally remains intact. 

S&P 500 futures erased early losses, signaling the US benchmark will advance from Wednesday’s all-time high. Gauges for European and Asian equities eked out gains. Nvidia dropped 1.5% in premarket trading, the lone decliner among the Magnificent Seven stocks. 

In global debt markets, the yield on 30-year Treasuries fell three basis points to 4.89% as pressure on long-dated debt eased. European bonds staged a broad advance, led by a rebound in French notes. The dollar fell for a third day. 

Investors turned to Nvidia’s earnings for insight into the artificial intelligence boom that has driven equity gains this year. Although its revenue forecast pointed to a slowdown after two years of surging investment, management pushed back against the idea that demand for AI infrastructure is waning.  

After recent headwinds in China for Nvidia tied to global trade tensions, any signs of fresh momentum there would be an additional tailwind for the stock, noted Filip Andersson of Danske Bank A/S. 

Any pickup in China “will be pure upside from the current forecast and if not, this is a one-off and not a sign of structural deceleration to growth,” Andersson wrote. “As a result, US futures are handling this report well.” 

With Nvidia’s results now mostly wrapping up the earnings season, traders will again turn their focus to next month’s Federal Reserve interest rate decision and data releases that will shape the policy outlook for the near future. They’re also watching US President Donald Trump’s unfolding battle with the Federal Reserve and any efforts to reshape the policy committee. 

Due later Thursday is initial jobless claims data as well as revised second-quarter gross domestic product figures. The GDP report is forecast to show personal consumption picked up to a moderate pace after a sluggish start to 2025.  

Friday’s core PCE index — the Fed’s preferred inflation gauge — is expected to edge higher, highlighting policymakers’ challenge of taming prices without further straining a softening labor market. 

“The market has been complacent in the number of Fed cuts it is pricing,” said Karen Georges, an equity fund manager at Ecofi. “If the job market shows more resilience than expected, investors might have to revise their rate cut expectations down.” 

In Japan, a two-year government bond auction Thursday met demand that was weaker than the 12-month average, as investors remain wary of the risk that the Bank of Japan will raise interest rates this year.   

Investors in mainland China sold a record HK$20.4 billion ($2.6 billion) worth of Hong Kong-listed stocks on Thursday, a sign the country’s army of investors are returning to their local market amid a breakneck rally.  

Corporate News: 

• Pernod Ricard SA expects sales to decline in the beginning of its next financial year, as it continues to grapple with trade friction in China and the US. 
• Warren Buffett’s Berkshire Hathaway Inc. has raised its stakes in Mitsubishi Corp. and Mitsui & Co., according to the Japanese trading houses, prompting a jump in shares across the sector. 
• HP Inc. gave a profit outlook for the current quarter that was in line with expectations, but investors remain concerned about the impact of economic uncertainty and higher costs tied to Trump’s trade policies. 
• Qantas Airways Ltd. shares jumped 11% after the company reported a 15% rise in full-year earnings and ordered more Airbus SE jets as demand for flights shows little sign of faltering. 
• CrowdStrike Holdings Inc. dropped after reporting strong results but narrowly missing analysts’ estimates for sales in the current quarter. 
• Snowflake Inc. shares jumped in extended trading after giving a strong outlook that overcame anxiety that software vendors will be hurt as the economy slows and new artificial intelligence companies take away business. 

Some of the main moves in markets: 

Stocks 

• The Stoxx Europe 600 was little changed as of 9:56 a.m. London time 
• S&P 500 futures were little changed 
• Nasdaq 100 futures were little changed 
• Futures on the Dow Jones Industrial Average rose 0.2% 
• The MSCI Asia Pacific Index was little changed 
• The MSCI Emerging Markets Index fell 0.5% 

Currencies 

• The Bloomberg Dollar Spot Index fell 0.1% 
• The euro was little changed at $1.1642 
• The Japanese yen rose 0.2% to 147.19 per dollar 
• The offshore yuan rose 0.3% to 7.1304 per dollar 
• The British pound was little changed at $1.3499 

Cryptocurrencies 

• Bitcoin rose 0.6% to $113,069.5 
• Ether was little changed at $4,598.38 

Bonds 

• The yield on 10-year Treasuries declined one basis point to 4.22% 
• Germany’s 10-year yield declined one basis point to 2.69% 
• Britain’s 10-year yield declined three basis points to 4.71% 

Commodities 

• Brent crude fell 0.8% to $67.48 a barrel 
• Spot gold rose 0.1% to $3,400.82 an ounce 

This story was produced with the assistance of Bloomberg Automation. 

© 2025 Bloomberg L.P.