Morning Wrap: ASX 200 to rise, Nvidia rally lifts the S&P 500 and Nasdaq
US benchmarks rose, with the S&P 500 and Nasdaq gaining 0.72% and 1.57% respectively. Nvidia led chipmakers higher, surging 8.7% on strong revenue growth forecasts. Fed officials pushed back on rate cuts. Salesforce and CrowdStrike also saw significant gains, while Wendy's fell 15% on bid withdrawal news.
How this was made
The 30-second read
Why it matters
The combined earnings beats and AI‑related contracts underpin the rally, but macro headwinds remain.
Market read
Tech earnings and AI procurement drive US equity gains; broader market sentiment remains cautiously optimistic.
What to watch
Rising yields and geopolitical risks may limit the sustainability of the rally.
Background
Morning market wrap summarizing US index gains, sector performance, commodity prices, and key corporate earnings.
Ticker impact
Nvidia reported Q2 FY27 revenue up 106% to $96.2bn and guided FY28 revenue growth of 70%, driving an 8.7% share rise.
Potential further rally of 5-8% over the next week if guidance holds.
Revenue beat and higher guidance exceed expectations, reinforcing bullish sentiment.
Amazon Web Services announced a purchase of 2 million Nvidia GPUs and deployment of Nvidia's Vera CPU.
May add modest upside to Amazon stock, 2‑4% over the next few days.
Large hardware spend indicates growth but impact on earnings is indirect.
Salesforce posted Q2 revenue of $11.35bn, slightly beating consensus, and deepened its partnership with Anthropic.
Potential 3‑5% price lift if market digests AI tie‑up.
Incremental beat, but partnership adds strategic upside.
CrowdStrike posted Q2 revenue of $1.47bn versus $1.44bn consensus, and EPS beat, sending the stock up 20.5%.
Short‑term rally of 5‑7% likely.
Strong beat and momentum suggest continued buying pressure.
Wendy's shares fell nearly 15% after Trian Fund announced it will no longer bid for the company.
Further downside of 5‑8% possible.
Removal of acquisition prospect removes upside catalyst.
Market effects
Tech sector leads market gains; AI hardware and cloud services benefit from Nvidia and AWS activity.
US equity indices rise, while Asian markets show mixed performance amid geopolitical tensions.
Broad market rally driven by AI hype and easing inflation concerns.
Counterpoint
Despite strong tech earnings, elevated valuations and rate‑sensitive sectors could trigger a pullback.
Key entities
- CompanyNvidia
AI chipmaker delivering strong earnings and guidance.
- DivisionAmazon Web Services
Cloud unit purchasing Nvidia GPUs.
- CompanySalesforce
CRM software firm beating revenue estimates.
- CompanyCrowdStrike
Cybersecurity firm with earnings beat.
- CompanyHP
PC and printer maker reporting revenue growth.
