Deutsche Bank analysts note the tech-led equity rebound extended into Asia, with the KOSPI and Nikkei sharply higher after Nvidia’s results drew a muted share reaction despite 85% yoy sales growth and stronger-than-expected guidance. S&P 500 and Nasdaq futures are flat after yesterday’s risk rally, which was helped by optimism over a potential US-Iran deal, lower Brent crude and softer Treasury yields.”

Global stocks rally on tech strength

"Yesterday’s positive market mood has continued into Asian hours this morning, with the Kospi (+8.08%) and Nikkei (+3.58%) surging via a tech rally even as Nvidia’s eagerly awaited earnings drew a mixed response last night. This follows yesterday’s +1.08% gain for the S&P 500 on increased investor optimism that a US-Iran deal might materialise, leading to sharp declines for Brent crude (-5.63%) and a reversal in Treasury yields (-8.1bps on 10yr)."

"Starting with Nvidia, the chipmaker reported 85% yoy sales growth to $81.6bn last quarter and projected revenue of around $91bn in the current quarter (vs. $87.4bn est.). Despite the impressive growth and a 75% gross margin, that moderate sales guidance beat drew a lukewarm response from investors. Nvidia’s shares slipped by about 1% in post-market trading after a +1.30% gain yesterday that took it to a +19.8% gain YTD."

"Futures on the Nasdaq and the S&P 500 are flat this morning following Nvidia’s results, but this comes after markets steamed ahead yesterday as the anticipation of good news on Iran brought oil prices and yields lower. The S&P 500 (+1.08%) rose for the first time in four sessions, with chipmakers and technology companies leading the way ahead of Nvidia’s results."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)