Nvidia Earnings Spark Tech Stock Rally

Nvidia Earnings Spark Tech Stock Rally

Nvidia’s blowout earnings report has ignited a broad rally across global technology stocks. The AI chip giant reported stronger-than-expected revenue and profits for Q1 2025, driven by surging demand for its data center GPUs and AI computing platforms.

The company’s quarterly revenue hit $26.2 billion, surpassing analyst estimates of $24.6 billion, while net income soared by 21% YoY. Nvidia also raised its full-year guidance, citing robust AI infrastructure demand from major cloud providers and enterprise clients.

Following the report, major tech indices jumped: the Nasdaq 100 rose 1.9%, while shares of other chipmakers like AMD and Broadcom gained over 3%. Investors now view Nvidia’s performance as a bellwether for the broader tech sector’s resilience and AI-driven growth.

AUD Drops as Capex Miss Fuels RBA Rate Cut Bets

The Australian Dollar extended losses after Q1 Private Capital Expenditure unexpectedly fell by 0.1%, missing forecasts of a 0.5% rise. This marks the fourth straight session of declines for AUD/USD, now hovering near 0.6410, as weak business investment data increases the likelihood of RBA rate cuts.

Adding to the pressure, the US Dollar surged over 0.50%, driven by risk aversion and strong expectations ahead of US Q1 GDP and PCE inflation data. Meanwhile, a US court blocked Trump’s “Liberation Day” tariffs, temporarily easing global trade tensions but not enough to lift the Aussie.

Technically, AUD/USD broke below its ascending channel, with key support at the 50-day EMA (0.6382). Unless Australian fundamentals rebound or risk sentiment improves, the pair may face continued downward pressure in the near term.

PBOC Sets Stronger-Than-Expected CNY Fix, Market Interprets Policy Intent

On Thursday, the People’s Bank of China (PBOC) set the USD/CNY reference rate at 7.1907, slightly higher than the previous 7.1894 but stronger than Reuters’ estimate of 7.2033. This suggests Beijing remains cautious about letting the Yuan weaken too fast amid global volatility.

The firmer-than-expected fix signals possible policy intent to stabilize the currency, likely to curb capital outflows and support confidence, especially amid geopolitical tension and slower recovery momentum in domestic demand.

While USD/CNY continues to hover near recent highs, the PBOC’s steady hand may help limit excessive downside pressure on the Yuan. Traders are watching for further clues from upcoming PMI data and global risk sentiment.

Japan’s Akazawa Urges US to Rethink Tariffs — USD/JPY Hits 145.91

Japan’s Economy Minister Ryosei Akazawa on Thursday made a pointed statement, saying Tokyo will “strongly request a review of tariff policy”, separating economic concerns from national security agendas. This underscores Japan’s growing discomfort with Washington’s broad use of trade restrictions.

Akazawa emphasized that trade and national security should not be bundled together, signaling pushback against US tariffs introduced under recent geopolitical justifications. Japan’s export-driven economy is particularly sensitive to rising trade barriers.

The market response was immediate: USD/JPY surged 0.74% to 145.91, reflecting both dollar strength and market expectations that Japan may face headwinds if tensions escalate further without tariff adjustments.

WTI Breaks $62 as OPEC+ Maintains Output Cuts

West Texas Intermediate (WTI) crude climbed to $62.15, rising 0.88% in early Thursday trading after OPEC+ held oil output quotas steady, reaffirming their December agreement. Traders now await the next decision in July, which could signal a production hike.

Market sentiment was further supported by the API report showing a larger-than-expected inventory draw of 4.236 million barrels last week, compared to a 2.499 million build prior. This drop points to tightening supply, boosting oil prices.

However, upcoming US GDP data and the EIA inventory report may introduce volatility. A stronger US economy could lift the dollar, potentially capping gains in oil, a USD-denominated asset.