The news: Australian shares are set to open higher after Wall Street extended its tech-led rally on Wednesday, with US indices touching two-week highs ahead of Nvidia’s after-market quarterly results, as concerns over artificial intelligence disruption and costs eased on renewed optimism about the technology’s potential benefits.
The numbers: Updated at 7:48am AEDT:
ASX futures: up 57 points to 9,137.Wall Street: Dow Jones up 0.64%, S&P 500 up 0.82% and the Nasdaq up 1.29%.Europe: CAC 40 up 0.47%, DAX up 0.76% and FTSE 100 up 1.18%.Spot gold: up 0.68% to USD5,176 per ounce.Oil prices: Brent up 0.13% to USD70.87/bbl and US WTI down 0.25% to USD65.46/bbl.AUD: up 0.89% at 71.20 US cents.Bitcoin: up 8.03% to USD69,177.
The context: All three US major indices traded higher overnight, with AI-related names and software stocks continuing to rebound from Monday’s sell-off, as markets brace for Nvidia’s quarterly results.
Nvidia’s earnings are seen as a key test for the tech sector, amid questions over whether recent AI-related sell-offs have been overdone. The chipmaker is expected to report year-on-year earnings growth of 72.2% on revenue of USD66.2 billion, according to analysts polled by Reuters, as demand for AI infrastructure continues. Nvidia shares rose 2.19% ahead of its quarterly report.
Investors also eyed other potential beneficiaries of the AI boom, with Western Digital, Palantir and Applied Materials rising 6.85%, 3.79% and 4.56% respectively. The S&P Software & Services index rebounded from its 23% year-to-date decline, outperformed with a 2.77% gain.
Locally, Atlas Arteria, Karoon Energy, Cleanaway Waste Management, IDP Education, Ramsay Health Care, Qantas Airways and Super Retail Group are among companies to report earnings today.