The market focuses on NVIDIA's earnings report, European chip stocks rise, the US dollar index reverses its decline, and gold and crude oil prices fall
U.S. stock futures are basically flat. In pre-market trading, most Chinese concept stocks are down, with Nio and Pinduoduo falling over 1%, and JD.com down nearly 2%. Among other assets, the U.S. dollar index is rising, U.S. Treasury bonds are basically flat, gold is down, and oil prices have retreated
The market is focused on Nvidia's earnings report to be released after the US stock market closes on Wednesday, with many uncertainties still present.
On Wednesday, August 27, S&P 500 and Nasdaq 100 futures showed little change, with a strong wait-and-see sentiment in the market. Asian tech stocks and the AI sector strengthened, while European chip stocks led the gains, with ASM International, ASML Holding, and Infineon showing the most prominent performances, driving the pan-European index up over 0.1%. The French stock market, however, performed poorly due to renewed political turmoil in the country.
Among other assets, the US dollar index rose, reversing the decline caused by Trump's attempt to fire Cook the previous day. US Treasury yields remained largely flat, following a general decline in long-term government bond prices in the US, France, and the UK on Tuesday. Gold prices fell, oil prices retreated, and the US's tariff policy on India officially took effect.
Here are the movements of core assets:
US stock futures were basically flat. In pre-market trading, most Chinese concept stocks fell, with Nio and Pinduoduo down over 1%, and JD.com down nearly 2%.
European stocks were mixed, with the pan-European index up over 0.1%, Germany's DAX index flat, the UK's FTSE 100 index up over 0.2%, and France's CAC 40 index up over 0.3%.
The Nikkei 225 index closed up 0.3%. Japan's Topix index closed down 0.1%. South Korea's Seoul Composite Index closed up 0.2%.
The US dollar index rose by about 0.3%, the Japanese yen fell over 0.2%, and the euro fell over 0.3%.
US Treasury yields remained flat, with the 10-year Treasury yield hovering around 4.26%.
Spot gold fell over 0.3%, and spot silver fell over 0.5%.
US oil fell over 0.3% to below $63.10, and Brent oil fell over 0.2% to below $67.10.
Mohit Kumar, Jefferies' Chief European Economist and Strategist, stated: "Today's focus will be on Nvidia's earnings report, which may set the overall tone for risk assets in the coming days. We remain optimistic about the tech sector because we believe the AI business cycle is just beginning. However, we have concerns about the stock market, mainly due to over-leveraged positions. We will wait for the market to undergo a 'cleaning' before increasing long positions."
Kyle Rodda, an analyst at Capital.com, pointed out that Nvidia's earnings report is not just about the company itself; it has become a barometer of macroeconomic activity, a symbol of AI trading, and a key node in global geopolitics.
US stock futures were basically flat.
The US dollar index rose over 0.3%.
US Treasury yields remained flat.
