Asian shares experienced a mostly lower trading session on Wednesday, despite Wall Street hitting a record high the previous day. The market’s focus is on Nvidia’s eagerly anticipated earnings report, which could influence global investment sentiment.
Japan’s Nikkei 225 index saw a modest gain of 0.2%, reaching 38,352.07 points in afternoon trading. In contrast, Hong Kong’s Hang Seng index, which had shown recent improvements, fell nearly 1.0% to 17,700.81. Analysts suggest that the optimism from higher-than-expected industrial profits in China might not be sufficient to sustain the market’s positive momentum. Meanwhile, the Shanghai Composite index declined 0.6% to 2,832.59.
Nvidia’s performance is under the spotlight as it prepares to release its latest earnings report. The company, a major player in the AI sector, has seen its market value exceed $3 trillion. Nvidia’s stock rose 1.5% on Tuesday and has surged 159% this year, making its upcoming financial results a significant point of interest for investors. “Nvidia is the elephant in the room,” remarked Bill Merz, head of capital markets research at U.S. Bank Wealth Management. “Many investors will be keenly watching their report this week.”
Additionally, investors are keeping an eye on the Federal Reserve’s next move regarding interest rates. Anticipations are high for a potential rate cut at the Fed’s September meeting. Market participants are also looking forward to Friday’s release of the U.S. Personal Consumption Expenditures (PCE) report, which will provide insights into inflation trends.
In the U.S., Wall Street saw slight gains with the Dow Jones Industrial Average rising by 9 points, or less than 0.1%, marking its second all-time high within two days. The Dow is now on an eight-day winning streak. Both the S&P 500 and Nasdaq composite saw gains of 0.2%, with the S&P 500 approaching its record high set last month. The Conference Board’s consumer confidence index increased to 103.3 in August from 101.9 in July, indicating positive consumer sentiment.
The S&P 500 climbed 8.96 points to 5,625.80, the Dow advanced 9.98 points to 41,250.50, and the Nasdaq gained 29.05 points to close at 17,754.82. Treasury yields remained steady, with the 10-year Treasury yield rising to 3.83% from 3.82% late Monday. In energy markets, U.S. crude oil prices remained unchanged at $75.53 per barrel, while Brent crude also held steady at $79.55 per barrel.
In currency markets, the U.S. dollar strengthened to 144.53 Japanese yen from 143.91 yen, and the euro decreased to $1.1140 from $1.1188.
I am Aparna Sahu
Investment Specialist and Financial Writer
With 2 years of experience in the financial sector, Aparna brings a wealth of knowledge and insight to Investor Welcome. As an accomplished author and investment specialist, Aparna has a passion for demystifying complex financial concepts and empowering investors with actionable strategies. She has been featured in relevant publications, if any, and is dedicated to providing clear, evidence-based analysis that helps clients make informed investment decisions. Aparna Sahu holds a relevant degree or certification and is committed to staying ahead of market trends to deliver the most up-to-date advice.
