U.S. technology futures jumped in early European trade after Nvidia's bumper earnings forecast renewed optimism around artificial-intelligence stocks, while software earnings quieted investor pessimism on the sector.
The world's most valuable company raised its revenue outlook, signaling greater optimism on the durability of AI demand and lifting sentiment in AI-linked stocks across the globe. U.S. Treasurys were little moved as investors wait for Federal Reserve Chair Kevin Warsh's hotly anticipated appearance at the Jackson Hole symposium Friday.
Oil prices pulled back as analysts cautiously welcomed progress in talks between Oman and Iran. Brent crude for October delivery fell 1.4% to $86.66 a barrel, while WTI contracts slipped 1.6% to $80.94 a barrel.
Nasdaq futures rose 1.1%, while futures for the Dow Jones Industrial Average and the S&P 500 rose 0.1% and 0.5%, respectively. Companies making the picks and shovels of the AI rush benefited most from Nvidia's earnings, with chip maker Micron Technology jumping 4.6% premarket while Nvidia leapt 7.5%.
Software stocks also surged premarket--led by a 11.5% gain for Salesforce--after a sweep of bullish earnings presentations lifted the sector and eased fears around competition from AI.
In Asia, South Korea's Kospi rose 1.5%. Memory chip makers led the gains with Samsung Electronics rising 1.7% and SK Hynix up 2.5%. European AI-related stocks also jumped, with ASML gaining 1.3%. Stocks in the continent drifted more broadly, as weakness in oil majors and luxury stocks dragged.
Treasury investors' focus is on Warsh's Friday appearance at Jackson Hole. Wednesday's PCE data showed inflation stubbornly above the Fed's 2% target, adding to pressure on Warsh to signal openness to raising rates, Danske Bank analysts Jesper Fjarstedt wrote in a note to clients.
Yields on 10-year Treasurys slipped 1.2 basis points to 4.652%, while 30-year yields fell 1.3 basis points at 5.171%. In the eurozone, German Bund yields rose 0.7 basis points to 3.229% as higher natural gas prices drive inflation concerns.
In currency markets, the dollar was steady. The Japanese yen was little moved after the Bank of Japan's Deputy Governor Ryozo Himino vowed to remain alert to inflation risks. Markets are increasingly confident the bank will hike rates in September.
Gold remained elevated at $4,654.70 a troy ounce, while Bitcoin continued to find resistance at the $80,000 mark, rising 0.6% to $79,503.28.
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