Futures are higher led by Tech as NVDA earnings boost the tape. As of 8:00am ET, S&P futures are 0.5% higher while Nasdaq futures jump 1.1% led by NVDA which is +7.4% in pre-market trading following an unprecedented forecast of 70% revenue growth in 2028, which is boosting Semis (+3%), incl MRVL +5.2% into their print tonight. NVDA helped the market climb a significant wall of worry and is not poised to resume it march higher. Memory is +3.6%, Software is +2.3%, Korea +2.1%, and Low/Unprofitable Tech +1.2% points to a broad-based Tech rally. Yet Only 2 of 7 Mag7 names are higher, NVDA and TSLA. Outside of Tech, most sectors are trading lower ex-Industrials / Utils which are benefitting from a reboot of the AI trade. Our Retail flows remain materially off their highs with behavior shifting from ETFs to single stocks; Mag7 / NVDA most bought, MRNA most sold with gold seeing strong inflows. Bond yields are +1-2bp with USD flat. Cmdtys are mostly lower dragged by Energy and Base Metals; Precious are mixed with gold flat and silver higher. Today’s macro data calendar includes July advance goods trade balance, weekly jobless claims and July inventories (8:30 a.m.) and August Kansas City Fed manufacturing activity (11 a.m.). Fed speaker slate includes Cleveland Fed’s Beth Hammack on CBNC at 10 a.m. and Fox Business at 1 p.m.In premarket trading, Magnificent Seven stocks are mostly lower even as Nvidia jumps 7.2% after the leader in AI chips gave an outlook for revenue growth that was stronger than expected. Others are mostly in the red: Alphabet -0.4%, Amazon -0.3%, Apple -1.1%, Meta Platforms -0.3%, Microsoft -1%, Tesla +0.4%. AI infrastructure stocks broadly gain after Nvidia’s outlook. Intel (INTC) 2%, Advanced Micro Devices (AMD) +1%.Software companies are rising following robust results from a number of notable names in the sector.CrowdStrike (CRWD) rises 9% after the security software company raised its full-year forecast on key metrics.Dollar General (DG) gains 13% after the retailer’s comparable sales for the second quarter topped expectations and management boosted guidance for the year. The stock had been down 7.5% this year through Wednesday’s close.Dollar Tree (DLTR) falls 4% as the retailer’s guidance for the third quarter and full year proves underwhelming after the stock’s 38% advance since its 1Q results on May 28. The S&P 500 Index was up 2.1% for the same period.Everpure (P) rises 2% after the computer storage company reported second-quarter results that beat expectations and raised its full-year forecast.Nutanix (NTNX) climbs 5% after the software company’s fourth-quarter results beat expectations and it gave an outlook that is seen as positive.Okta (OKTA) gains 17% after the software company boosted its full-year forecast on key metrics, including adjusted earnings and revenue.Salesforce (CRM) is up 10% after the software company raised its full-year forecast and announced an expanded partnership with Anthropic.Wendy’s (WEN) plunges 14% after Reuters reported that Nelson Peltz’s Trian Fund Management has no plans to make a bid at this time to take the fast-food chain private.In other corporate news, a $31 billion venture between Kioxia Holdings Corp. and Sandisk Corp. to ratchet up flash memory production added to the buoyant tone in technology stocks. Security Benefit Life Insurance will restructure its $14 billion stockpile of collateral loans after such assets drew scrutiny from regulators. Caesars Entertainment turned down a bid from investor Carl Icahn to take the company private and instead chose a lower offer from billionaire Tilman Fertitta because it was more comfortable with other terms of his proposal. The owners of the 800-mile Trans Alaska Pipeline System are seeking to renew its federal land authorization more than seven years before it expires, a move that could capitalize on President Trump’s enthusiasm for US oil production.Nvidia’s 7% pre-market gain following its solid revenue outlook is propelling the Nasdaq future higher by 1.1%, even as the index pulled back from highs after Politico reported the White House is mulling a fresh round of tariffs on chips. Nvidia’s upbeat outlook offered relief to investors concerned about a bubble in the AI economy as CEO Jensen Huang said demand for its artificial-intelligence accelerators continues to expand. Nvidia’s surprising stab at providing longer-term guidance (70% revenue growth for fiscal 2028, versus consensus around 45%) was taken positively, especially in the context of the number reflecting constrained supply dynamics (imagine how high the forecast could have been without the bottlenecks). The conference call pushed back on the circular deal narrative, while Huang later said “investing in these companies is a once in a generation opportunity. I think the only regret that I have is that I didn’t invest more and sooner.”Nvidia’s results showed that the AI cycle is primarily constrained by physical bottlenecks such as memory and power, rather than a shortage of end demand, said Amanda Lyons, head of research at Energy Group Capital. “It effectively pushes the cyclical question further out and, crucially, gives investors permission to extend the earnings-growth runway not just for Nvidia, but across the second- and third-order beneficiaries of the AI buildout,” she said.The VIX Index is below 15 and VVIX below 86, while even one-year Nvidia implied volatility appears cheap - despite its CDS trading at highs and as Chinese competition builds. The risk of AI headline fatigue is setting in. “Given Jensen’s constant visibility this quarter, the myriad of circular deal announcements, and just the mental exhaustion from AI headlines,” this week’s main event remains that of Warsh and the Fed at Jackson Hole, according to Dave Lutz at Jonestrading.The company is “taking a more active role in removing the capital and infrastructure bottlenecks that could constrain its own growth,” notes Amanda Lyons, head of research at Energy Group Capital. More broadly, she adds that “the AI cycle is still being governed primarily by physical constraints such as memory, packaging, power and data-centre capacity, rather than by any shortage of end demand.”Nvidia’s performance reflects how it has become the funding trade for AI picks and shovels, even as it acts as the industry’s bank. GAM’s head of global equities Paul Markham notes “the biggest risk to Nvidia here is a cash call, which is that it becomes a victim of its own success in the sense that investors get very, very excited about the Anthropic IPO and sell some Nvidia to fund it.”With software considered to be perceived victims of AI, a reassuring print from CRM leader Salesforce gives some relief in predicting strong revenue expansion and deepening its partnership with Anthropic. Elsewhere in AI, AWS committed to deploy two million additional Nvidia GPUs across its global infrastructure in 2027-2028.Attention will now turn to the Jackson Hole Economic Symposium. Kevin Warsh will deliver his first major speech as Fed chair on Friday, giving investors fresh clues on the policy outlook after he faced criticism over a lack of clarity about his views on the economy.“The market wants a little bit more hawkishness because you have seen some pretty strong numbers coming out on growth and inflation, pointing more toward higher rather than lower rates,” said Caspar Rock at Schroders Wealth Management. “More clarity should give a bit more confidence, and that might perk up the dollar rather than fixed interest markets.”Earnings growth from core tech names “is crucial given this is the main driver for US markets, and tech investment is the main driver for US growth,” said Geoff Yu at BNY. However, “with strong growth comes the risk of tighter monetary policy, which for now is also the market’s base case.”Still, some pockets of weakness tempered Thursday’s optimism. HP Inc. tumbled as investors worried about demand for the company’s computers and printers. Meanwhile, Wheat prices hit the highest since July 2023, keeping inflation concerns in focus alongside still-elevated energy prices.Tech optimism was also not on display in Europe with the Stoxx 600 down 0.3%, as a retreat in consumer stocks outweighed the gains in the technology sector.Asian stocks advanced for a third day, led by chip stocks after Nvidia Corp.’s bullish sales outlook injected vitality into the AI trade. The MSCI Asia Pacific Index advanced as much as 0.7% before paring. The Nvidia-inspired rally in chip stocks swept across the region, from South Korea to Japan with SK Hynix, Samsung Electronics and Kioxia the biggest contributors. “Nvidia handed SK Hynix and Samsung one of the strongest demand signals they could have asked for,” said Josh Gilbert, an analyst at online trading platform eToro. “When the industry’s most important customer can not get enough memory and prices are still heading higher; the read-through for both stocks is very positive.” Kioxia shares rose 5%, boosted by reports that it will build a new facility in northern Japan. The company confirmed after the market closed that it plans to spend more than ¥5 trillion ($31.4 billion) with Sandisk to ratchet up production capacity across the country. Benchmarks in South Korea and China gained while Japanese stocks fluctuated. Philippines was the worst performer in the region, dropping the most in two months, as a third successive rate hike added to economic headwinds. AI-bellwether Korea also digested its central bank’s decision to raise its benchmark interest rate for a second consecutive meeting to contain inflation.In rates, treasuries hold small losses as US trading gets under way, lifting yields by 2bp-3bp ahead of the monthly 7-year note auction, following a subpar, tailing 5Y on Wednesday. Yield-curve flattening trend unleashed by last week’s Treasury Department decision to expand buybacks targeting 10- to 30-year sectors is intact; 5s30 spread narrowed to under 79bp, lowest since July 29 (most recent Federal Reserve decision date), 2s10s to under 43bp, lowest since Aug. 10-year yield is about 2bp higher on the day near 4.67% and slightly cheaper vs UK and German counterparts. Oil prices, which in recent sessions have led yields lower, are little changed, inside Wednesday’s ranges.