This content was published on
August 27, 2026 - 06:06
5 minutes
(Bloomberg) — Nvidia Corp.’s bullish sales outlook lifted stocks and futures, bolstering optimism that this year’s rally in artificial intelligence shares has further to run. Shorter-maturity Treasuries fell as traders added to bets on interest-rate hikes.MSCI’s Asia Pacific equity gauge rose 0.5%, with semiconductor makers SK Hynix Inc. and Samsung Electronics Co. the biggest contributors. The Kospi Index — a bellwether for AI investments — advanced 1.8%.Nvidia’s shares rallied 4.7% in extended trading after signaling strong sales growth through 2028, lifting other AI stocks including Marvell Technology Inc. and Sandisk Corp. Futures for the tech-heavy Nasdaq 100 Index climbed 0.9%, while contracts pointed to gains for European shares.Caution lingered in bond markets as traders boosted bets on Federal Reserve rate hikes this year after a key US inflation gauge remained above the central bank’s target. The yield on the two-year Treasury note rose one basis point to 4.22%, as money markets fully priced in a rate increase by December.Nvidia’s outlook offered fresh evidence that spending on AI infrastructure remains robust, easing concerns that the investment boom is losing steam. The upbeat forecast comes as investors increasingly scrutinize whether heavy AI spending can sustain earnings growth after a volatile stretch for technology stocks.The “results provide further support for my bullish outlook on the AI investment theme and the broader technology sector,” said Ivan Feinseth, chief investment officer and director of research at Tigress Financial. “The AI infrastructure cycle remains in an early-to-middle stage rather than nearing a peak.”Nvidia expects to grow revenue by approximately 70% in fiscal 2028, chief financial officer Colette Kress said during a post-earnings conference call. Analysts have projected an increase of about 45% for that year, according to data compiled by Bloomberg.Still, investors such as Naoki Fujiwara, a senior fund manager at Shinkin Asset Management, said that rising memory prices could put some pressure on margins.Elsewhere, wheat futures reached the highest in three years as persistent attacks on vessels and infrastructure in the Black Sea region curbed shipments from one of the world’s biggest breadbaskets, reigniting food inflation worries.Gold rose 0.7% to about $4,625 an ounce, while Brent traded around $87.40 a barrel.The South Korean won strengthened against the dollar after the country’s central bank delivered back-to-back rate hikes to curb inflation risks.Bonds fell in Australia, New Zealand and Japanese as expectations grew that their central banks will tighten policy to contain inflation. Overnight-indexed swaps suggested the Reserve Bank of Australia will hike its official cash rate this year, while indicating tightening may come as early as next week in New Zealand.Yields on Australia’s three-year notes climbed seven basis points to 4.67%. Those on New Zealand’s two-year debt advanced six basis points to 3.60%. Japan’s two-year yield edged one basis point higher to 1.695%.Investors also got a fresh read on US inflation Wednesday. The core personal consumption expenditures price index, which excludes food and energy, rose 0.2% from the prior month and 3.3% from a year earlier. Inflation-adjusted consumer spending was flat after gains in May and June.Attention now turns to the Jackson Hole Economic Symposium. Kevin Warsh will deliver his first major speech as Fed chair, giving investors fresh clues on the policy outlook after facing criticism over a lack of clarity on his views about the economy.“What matters here isn’t a simple hawkish or dovish call, but how he navigates the balance between inflation, employment, long-end yields, and Fed credibility,” Dilin Wu, a strategist at Pepperstone Group Ltd., wrote in a note. “Should the market grow concerned about a policy misstep, it could continue to weigh on US equities.”Corporate Highlights:CrowdStrike Holdings Inc. forecast revenue figures for the full year that exceeded analysts’ estimates.. Salesforce Inc. gave an outlook for strong revenue expansion and deepened its partnership with Anthropic PBC. Anthropic PBC has agreed to spend $45 billion to rent AI cloud computing power from Nscale’s flagship data center development in West Virginia. Some of the main moves in markets:StocksS&P 500 futures rose 0.5% as of 1:02 p.m. Tokyo time Nikkei 225 futures (OSE) were little changed Japan’s Topix rose 0.3% Australia’s S&P/ASX 200 fell 0.9% Hong Kong’s Hang Seng fell 0.4% The Shanghai Composite rose 0.6% Euro Stoxx 50 futures rose 0.4% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1655 The Japanese yen was little changed at 159.34 per dollar The offshore yuan was little changed at 6.7208 per dollar CryptocurrenciesBitcoin rose 0.5% to $78,831.15 Ether rose 0.8% to $2,492.8 BondsThe yield on 10-year Treasuries was little changed at 4.65% Japan’s 10-year yield was unchanged at 2.885% Australia’s 10-year yield advanced eight basis points to 5.11% CommoditiesWest Texas Intermediate crude fell 0.5% to $81.81 a barrel Spot gold rose 0.8% to $4,626.13 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Winnie Hsu, Aya Wagatsuma and Masaki Kondo.©2026 Bloomberg L.P.
