Asian Pacific markets mixed

US stock index futures were little changed in early trade on Wednesday as investors braced for Nvidia’s highly anticipated quarterly results.

The subdued trade follows a positive close for Nvidia on Tuesday, when the stock ended 1% higher. Other major tech companies, including Tesla, AMD, Palantir, and Apple, also gained. Tesla stood out among the big names, finishing the session at $351.67, up 1.92%. The moves helped reverse recent losses across the sector as investors lightened up their exposure to the tech giants and added to smaller, overlooked value plays.

Nvidia is now back within sight of its all-time high of around $184 and is currently trading within a significant band of resistance. Tonight's earnings release after the US close is likely to be decisive in either taking Nvidia to new heights or, should they disappoint for the first time in many years, sharply lower should investors head for the exits. Nvidia is widely viewed as a barometer for the broader market and the main driver of this year’s AI-driven rally.

Source: TN Trader

The Wall Street consensus expects Nvidia to deliver revenue and earnings figures above estimates, continuing a streak that has seen the chipmaker beat forecasts in 11 of its last 12 quarters. However, it’s worth noting that the stock has posted negative post-earnings reactions in four of those instances. With Nvidia holding the largest weight in the S&P 500 and considered a key bellwether for tech and AI, its results could dictate near-term market direction, especially for the “Magnificent Seven” following last week’s sell-off.

Meanwhile, MongoDB surged nearly 30% in after-hours trading after delivering earnings and guidance that exceeded Wall Street expectations. Okta followed suit, jumping about 6% after a strong report, with both companies citing robust demand tied to AI platform development.

European stock indices had a muted start on Wednesday. The German DAX was a tad weaker as investors reacted to the latest GfK Consumer Climate survey. This was weaker than expected, falling to its lowest level since March, indicating rising consumer pessimism amongst German consumers.

In contrast, both the Euro Stoxx 50 and the UK’s FTSE 100 eked out modest gains, while the French CAC managed to recover some of this week’s losses after sliding 1.6% in the previous session. Concerns persist over political instability linked to Prime Minister Francois Bayrou’s upcoming confidence vote. Opposition parties have signalled they will not support Bayrou’s proposal, raising doubts about the government’s ability to pass its 2026 budget.

Crude was a touch weaker in early trade on Wednesday but showed some signs of stabilising following yesterday’s sharp sell-off. This saw oil prices give back all their gains from Monday, and more. The initial rally came on concerns of supply issues as Ukraine launched a series of attacks on Russian energy infrastructure.

Source: TN Trader

Traders also expressed worries that President Trump would impose secondary sanctions on Russian oil exports should Russia’s President Putin continue to drag his feet over setting up a peace conference with Ukrainian President Zelensky. Yesterday’s sell-off indicated a lack of confidence in an oil market that continues to enjoy a glut of products yet must also account for a continued slowdown in demand growth.

Traders were also factoring in the imposition of a 50% tariff by the Trump administration on Indian exports to the US. While this is part of the Trump administration’s overall trade war, it is also seen as a punishment for India’s continued purchase of sanctioned Russian oil.

Bitcoin was a touch firmer in early trade. This follows the protracted sell-off, which began just under a fortnight ago after Bitcoin hit a new all-time high just south of $125,000. It has found some support around $110,000 while its daily MACD has pulled back below neutral.

While this indicates that momentum is to the downside, it also means that there’s room for Bitcoin to rally from here should sentiment turn positive. That in turn could depend largely on Nvidia’s earnings report after tonight’s US close. 

Gold slipped lower overnight, giving back a small proportion of yesterday’s gains. Gold also had a strong session at the end of last week, and this has helped push prices back up towards $3,400.

Gold is reacting to moves in the US dollar, and the latter was sharply higher this morning, bouncing back after a generally weak August. The dollar also fell sharply on Friday following Fed Chair Powell’s ‘dovish’ tilt in his Jackson Hole speech. Despite this, gold continues to trade in a wide range of $3,450-$3,250, still shy of April’s record high of $3,500.

President Trump’s standoff with the Federal Reserve intensified after he confirmed nominees to replace former Governor Lisa Cook. His picks include David Malpass, former World Bank President, and economic adviser Stephen Miran - both considered aligned with his policy stance.

Since Trump’s re-election and the start of his second term, key asset classes have delivered notable returns: the US 500 is up 11.81%, the US Tech 100 has gained 16.3%, Bitcoin has surged 61.53%, and gold has advanced 23.66%. These figures highlight the market’s response to a policy mix of tariffs, regulatory moves, and evolving Fed dynamics.

India’s new 50% tariffs remain a key overhang for regional risk sentiment and trade dynamics. Tensions between President Trump and the Federal Reserve continue to shape policy expectations, with his announced nominees signalling an assertive stance toward the central bank. In the meantime, all eyes are on Nvidia’s earnings release after tonight’s close.