Demand for artificial intelligence computing power remained strong as Nvidia reported a +69% increase in revenue, despite recent blockages from the Trump administration. Wall Street rose only modestly. European markets fell after a failed rally sparked by news that a court had blocked President Trump’s blanket tariffs.
Wall Street’s main benchmarks rose only modestly despite Nvidia’s +69% year-on-year increase in quarterly revenue. The DOW and NASDAQ both gained +0.2%, while the S&P 500 rose +0.3%. AI giant Nvidia added +3.0% after reporting stronger-than-expected revenue. While analyst expectations had been muted due to global trade tensions, Nvidia once again demonstrated that demand for AI remains inelastic. The company posted revenue of US$44.1 billion. Salesforce fell -3.8%, weighing on the DOW, despite raising its annual revenue and profit forecasts. Boeing gained +3.3% after its CEO announced plans to increase production of its 737 MAX aircraft to 42 units per month in the near term. In rates markets, the US two-year Treasury yield fell -5 bps to 3.95%, while the 10-year also dropped -5 bps to 4.43%.
The Stoxx 600 fell -0.2% after rising as much as +0.5% earlier in the day. London’s FTSE 100 lost -0.1%. Early gains were driven by optimism following a US court ruling that blocked President Trump’s tariffs. However, the administration has appealed the decision, and the final ruling may now fall to a Republican-majority US Supreme Court. Separately, the Court of International Trade ruled that Trump had overstepped his authority when imposing multiple tariffs on international partners.
The ASX 200 added a modest +0.2%, supported by strength in the oil and gas sector. Crude prices rose following a US court ruling that blocked President Trump’s blanket tariffs on key trading partners. Goodman Group fell -1.4% after three investment banks lowered their target prices and recommendations on the stock. The NZX 50 lost -0.7% as the market digested earnings reports and a large sell-down in EBOS (-4.2%) by a major shareholder. Japan’s Nikkei 225 and Korea’s Kospi both gained +1.9%, leading Asian benchmarks into positive territory. Hong Kong’s Hang Seng rose +1.4%, while China’s CSI 300 and Shanghai Composite added +0.6% and +0.7% respectively.
WTI Crude fell -1.5% to US$60.90/bbl, Iron Ore also lost -0.1% to US$99.39/MT, and Gold gained +0.9% to US$3,318.70/oz.