TOKYO — Global stock prices were largely lower on Thursday after markets digested a strong earnings report from US chipmaker Nvidia.
Nvidia once again exceeded analyst expectations. But technology stocks in Tokyo fell, having previously risen in anticipation. In after-hours trading, Nvidia shares lost 2.5%.
The French CAC 40 lost almost 0.2% to 7,186.09 in early trading, while the German DAX rose almost 0.2% to 19,030.65. Britain’s FTSE 100 rose 0.2% to 8,104.43. US stocks were set to move lower, with Dow futures down less than 0.1% to 43,502.00. S&P500 futures fell nearly 0.3% to 5,922.75.
In Asia, Japan’s benchmark Nikkei 225 lost 0.9% to end at 38,026.17, while shares in semiconductor equipment maker Advantest Corp. fell by 1.6%. Chipmaker Tokyo Electron lost 0.4%.
The Australian S&The P/ASX 200 lost 0.1% to 8,323.00. South Korea’s Kospi fell less than 0.1% to 2,480.63. Hong Kong’s Hang Seng fell 0.5% to 19,601.11, while the Shanghai Composite was little changed, rising less than 0.1% to 3,370.40.
Stephen Innes, managing partner at SPI Asset Management, noted that market reaction to Nvidia’s results was muted, partly due to its pre-release positioning. The long-term outlook remains complex, he added.
“The bigger question remains: where exactly is the bar set for Nvidia?” said Innes. “This drive to integrate AI into every corner of the business world risks backfiring as the technology is forced into roles it is not fully equipped for.”
Options market trading suggested that Nvidia’s earnings report was the most anticipated event in 2024, more than even the Federal Reserve’s upcoming interest rate meeting, according to Barclays Capital.
Nvidia has grown into a nearly $3.6 trillion behemoth due to the nearly insatiable demand for its chips used in artificial intelligence technology.
Are grown so quicklyWith the stock nearly tripling this year, pressure has increased to demonstrate that the company can continue to exceed analysts’ already high expectations.
Tips on how American consumers are doing are being closely watched because their spending will help determine whether the U.S. economy will continue to grow and avoid a recession. Shoppers are struggling with high prices across the economy and continued high interest rates.
The financial markets are also still absorbing the consequences of the crisis Donald Trump’s victory in the presidential election, including expectations that Trump’s policies will stimulate faster economic growth and inflation in the US.
In energy trading, U.S. benchmark crude rose 73 cents to $69.48 a barrel. Brent crude, the international standard, added 68 cents to $73.49 a barrel.
In currency trading, the US dollar fell from 155.31 yen to 154.83 Japanese yen. The euro was at $1.0541, down from $1.0546.
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AP Business Writer Stan Choe contributed.
Yuri Kageyama is on Topics: https://www.threads.net/@yurikageyama