US Futures, Nvidia Drop After Chipmaker’s Outlook: Markets Wrap
Contracts for the Nasdaq 100 declined 0.4% while the chipmaker fell 3% after its sales forecast fell short of estimates.
US equity-index futures fell and Nvidia Corp. retreated in extended hours after the chipmaker’s sales outlook missed lofty expectations, weighing on sentiment around the world’s most valuable listed company.
Contracts for the Nasdaq 100 declined 0.4% while the chipmaker fell 3% after its sales forecast fell short of estimates. US stocks dipped in late hours after the S&P 500 benchmark hit a record high. Futures for Hong Kong and Chinese stocks were weak as Meituan’s warning pushed an index of US-listed Chinese companies to its worst day in two months.
A gauge of the dollar edged down for a third day. Short-dated Treasuries slipped after two days of gains, sending the yield on the benchmark two-year bond higher by one basis point to 3.62%. Oil dropped 0.5% as traders looked past US efforts to force India to quit buying Russian crude.
Nvidia’s tepid outlook fueled concerns that the massive run-up in artificial intelligence spending may be losing momentum, raising doubts over the durability of one of this year’s key market drivers. Global equities have advanced since April on bets that the AI boom would continue to bolster technology earnings, even as easing tariff tensions supported broader risk appetite.
“The information feeds into niggling fears of slowing investment in the AI space and lower growth going forward,” wrote Kyle Rodda, a senior market analyst at Capital.com in Melbourne. “With the stock all but at record highs, the couple of pockmarks on the result pushed the stock lower and may weigh on broader market sentiment today.”
Nvidia’s forecast signaled that growth is decelerating after a staggering two-year boom in artificial intelligence spending.
Difficulties in China also have clouded the business. Though President Donald Trump’s administration recently eased curbs on exports of some AI chips to that country, the reprieve hasn’t yet translated into a rebound in revenue.
In China, Meituan warned of major losses this quarter while waging a price-based battle with Alibaba Group Holding Ltd. and JD.com Inc., the most striking sign yet that its internet rivals are threatening its longstanding dominance of a lucrative home market.
China’s food delivery leader issued its dire prediction after reporting “irrational competition” had all but wiped out its profit in the June quarter. Meituan’s net income plummeted 97% to 365.3 million yuan ($51 million) despite a 12% rise in revenue.
What Bloomberg strategists say: Meituan’s 97% profit drop reported overnight will keep investors on edge as they brace for Alibaba’s earnings on Friday. Longer term, Beijing’s policy backing to support AI development remains a tailwind, but signs of froth are mounting.—Mary Nicola, MLIV
Meanwhile, the 30-year yield slipped one basis point Thursday, following the recent announcement by Trump that he was firing Fed Governor Lisa Cook amid allegations of mortgage fraud. His top economic adviser Kevin Hassett said Cook should go on leave while her status on the board is being litigated.
Elsewhere, the Mexican government plans to increase tariffs on China as part of its 2026 budget proposal next month. Indian markets will be in focus after Wednesday’s holiday as Trump’s latest tariffs on Indian goods take effect.
Corporate News:
HP Inc. gave a profit outlook for the current quarter that was in line with expectations, but investors remain concerned about the impact of economic uncertainty and higher costs tied to Trump’s trade policies.
Qantas Airways Ltd. shares jumped 11% after the company reported a 15% rise in full-year earnings and ordered more Airbus SE jets as demand for flights shows little sign of faltering.
CrowdStrike Holdings Inc. dropped after reporting strong results but narrowly missing analysts’ estimates for sales in the current quarter.
Snowflake Inc. shares jumped in extended trading after giving a strong outlook that overcame anxiety that software vendors will be hurt as the economy slows and new artificial intelligence companies take away business.
Pure Storage rose 14% postmarket after the cloud storage provider posted fiscal 2Q results that topped estimates and raised the year forecast.
Some of the main moves in markets:
Stocks
S&P 500 futures fell 0.3% as of 10:05 a.m. Tokyo time
Japan’s Topix rose 0.1%
Australia’s S&P/ASX 200 was little changed
Euro Stoxx 50 futures were unchanged
Currencies
The Bloomberg Dollar Spot Index was little changed
The euro was little changed at $1.1647
The Japanese yen was little changed at 147.30 per dollar
The offshore yuan was little changed at 7.1489 per dollar
Cryptocurrencies
Bitcoin fell 0.9% to $111,456.37
Ether fell 2% to $4,505.29
Bonds
The yield on 10-year Treasuries was little changed at 4.23%
Japan’s 10-year yield was unchanged at 1.620%
Australia’s 10-year yield declined two basis points to 4.30%
Commodities
West Texas Intermediate crude fell 0.6% to $63.76 a barrel
Spot gold fell 0.2% to $3,391.34 an ounce
This story was produced with the assistance of Bloomberg Automation.
