Nvidia's Earnings Surprise... Domestic Stock Market Expected to Open Higher [Good Morning Market]

Nvidia Surges 4.4% in After-Hours Trading
Market Watches Federal Reserve Chair Warsh's Jackson Hole Speech
International Oil Prices Fall for Third Consecutive Session

Nvidia, the leading artificial intelligence (AI) stock, surged by 4.4% in after-hours trading after announcing strong quarterly results. With this momentum, the domestic stock market is also expected to open higher, especially driven by the semiconductor sector.

On the 26th (local time), the Dow Jones Industrial Average closed at 53,463.88, down 113.52 points (0.21%) from the previous session. The S&P 500 dropped 1.58 points (0.02%) to close at 7,675.70, while the tech-heavy Nasdaq Composite finished at 26,130.20, down 21.10 points (0.08%) from the previous session.

Investors took a wait-and-see approach ahead of Nvidia's earnings announcement. This earnings release was seen as a key indicator not only for AI semiconductor demand but also to gauge whether big tech companies will continue investing in data centers.

After the market closed, Nvidia reported that its revenue for the fiscal second quarter (May to July) reached $96.22 billion, setting a new record for the 13th consecutive quarter. This figure exceeded the market consensus of $92.17 billion, as projected by London Stock Exchange Group (LSEG). Nvidia also gave guidance that revenue would increase further in the fiscal third quarter, reaching $108.0 billion.

CEO Jensen Huang emphasized, "AI has reached an inflection point. Tokens are productive and profitable, and now computing equates to revenue." He added, "A year ago, there was only one AI research lab leading infrastructure expansion, but now we are witnessing a golden era with a surge of new research labs and startups. 'Vera Rubin,' which has entered full-scale mass production, was developed precisely for this moment," he said.

The U.S. inflation data came in higher than market expectations. According to the Department of Commerce, the Personal Consumption Expenditures (PCE) Price Index for July rose by 3.7% year-on-year, slightly above the market expectation of 3.6%. On a month-on-month basis, it increased by 0.2%. Excluding volatile food and energy components, the core PCE Price Index for July climbed by 3.3% year-on-year and 0.2% month-on-month, which was in line with expert forecasts. The market is closely watching Federal Reserve Chair Kevin Warsh's speech at Jackson Hole, scheduled for the 28th.

U.S. Treasury yields also edged up. By the market close, the yield on the 10-year Treasury had risen by 2.6 basis points (1bp=0.01%) to 4.663%, and the 30-year yield climbed by 1.1 basis points to 5.185%.

With progress reported in negotiations between Iran and Oman over the Strait of Hormuz, international oil prices fell for a third straight session. On the London ICE Futures Exchange, October Brent crude for delivery ended at $87.84 per barrel, down 0.84% from the previous day. On the New York Mercantile Exchange, October West Texas Intermediate (WTI) closed at $82.23 per barrel, down 0.16% from the prior session.

Ji-Young Han, a researcher at Kiwoom Securities, stated, "Nvidia's earnings performance confirms ongoing supply bottlenecks and the sustainability of AI demand until 2028. As the outlook for memory demand becomes clearer and memory companies' pricing power improves, investor sentiment for semiconductors—which has been unsettled for some time—will likely enter a recovery phase."

This content was produced with the assistance of AI translation services.