MARKET SNAPSHOT

U.S. stocks were bolstered by Nvidia's monster revenue forecast. Treasury yields rose ahead of Fed Chairman Warsh's first Jackson Hole speech. Oil snapped a three-session losing streak over concerns about the conflict between Russia and Ukraine. Gold futures edged up as the dollar edged down.

MARKET WRAPS EQUITIES

A blockbuster revenue forecast from Nvidia brought some much-needed relief to investors who have been anxious about the AI boom.

The world's most valuable company reported blowout revenue and earnings that came in well ahead of estimates Wednesday-and offered a bullish outlook for the year ahead, too.

The so-called triple-play boosted the chip maker's shares 8.7%, giving investors the largest Nvidia increase since April 2025. It also sent other stocks tied to the AI buildout higher.

U.S. stock indexes rose, led by the Nasdaq composite, which added 1.6%. The S&P 500 added 0.7%, while the Dow industrials edged 0.2% higher.

It was another day of tech dominance-10 of 11 S&P sectors fell on the day, but tech rose 3.4%, boosted by companies like CrowdStrike and Salesforce, both of which reported strong results powered by AI demand.

Earlier Thursday, Nvidia's earnings and guidance, along with developments in the Middle East, set the tone for trading in Asia, with equity markets mixed as investors cautiously cheered the robust results.

Shares of Asian semiconductor companies, which serve as the backbone of the global AI infrastructure buildout, rallied broadly.

The Bank of Korea tightened monetary policy by 25 basis points to 3% while simultaneously raising growth forecasts. The Kospi Composite Index gained 1.5%.

China's Shanghai Composite Index gained 1.1% while the Shenzhen Composite Index added 1.7%. The tech-focused ChiNext Price Index also climbed 1.7%. Hong Kong's Hang Seng Index declined 0.3%.

Japan's Nikkei Stock Average slipped 0.2%, dragged lower by videogame shares. Deputy Gov. Ryozo Himino said the Bank of Japan remains alert to inflation risks and will discuss the need to tighten policy.

Stocks in Australia slipped, as the S&P/ASX 200 dropped 1.0%. New Zealand's S&P/NZX 50 Index dropped 1.0%.

COMMODITIES

Oil futures snapped a three-session losing streak and settled higher as the market turned its attention away from the Middle East to the Russia-Ukraine war that's heating up.

"The bearish mood changed when reports emerged that Vladimir Putin had allegedly said talks with Ukraine were fruitless and that Russia was preparing to ramp up the war," Phil Flynn of the Price Futures Group said. "The market is already pricing in victory on the Iranian front. The wild card now is what is happening on the Russian front."

WTI settled up 1.6% at $83.53 a barrel, and Brent rose 2.1% to $89.70.

Gold futures edged up in a steady session with the market awaiting Friday's comments by Fed Chairman Kevin Warsh at Jackson Hole.

"A balanced tone could support gold, while hawkish remarks may lift yields and pressure the metal," Konstantinos Chrysikos of Kudo.com said.

"Markets will also watch any shifts in geopolitical developments in the Middle East and their impact on oil prices and inflation expectations."

Front month gold settled up 0.25% at $4,609.70 a troy ounce. Silver rose 2.1% to $69.429 a troy ounce.

TODAY'S TOP HEADLINES

Yields on Seven-Year U.S. Treasurys Sold at Auction Near Two-Year High

Yields on U.S. Treasury seven-year notes sold at auction rose to an almost two year high as investors grow increasingly uneasy about the long-term economic outlook.

The U.S. Treasury Department on Thursday sold notes at auction that yield 4.512%, the highest since December 2024, when it cleared at 4.532%.

The yield was above the 4.508% level the seven-year was trading at before the sale, on a when-issued basis. The difference, or tail, indicates bidders demanded a higher return for the risk of holding long-term government debt.

Iran Talks Sputter as Trump Spurns a Return to His June Deal

The Trump administration has repeatedly told mediators it has no interest in going back to the terms of the memorandum of understanding it reached with Iran in June, complicating this week's flurry of efforts to restart the diplomatic process, people familiar with the matter said.

The preliminary deal that President Trump signed at the Palace of Versailles and which Vice President JD Vance helped negotiate aimed to reopen the Strait of Hormuz and kick-start talks on Iran's nuclear program and an end to the war in exchange for sanctions relief and giving Tehran access to its frozen cash around the world. But it fell apart within weeks after Iran started attacking ships to assert its control over the vital waterway.

Trump has since settled on a policy of squeezing Iran economically and is willing to wait to see if the strategy bears fruit, the people said. They said the president in particular is no longer interested in the memorandum of understanding, which was heavily criticized in the U.S. as soft on Iran.

Nvidia Forms PAC to Bolster Its Influence on Chips and AI Policy in Washington

Nvidia launched a political action committee on Thursday in the latest acknowledgment that the artificial-intelligence boom is increasingly sensitive to developments in Washington.

The Nvidia Corporation Employees Federal PAC, which filed a statement of organization with the Federal Election Commission, takes voluntary employee contributions. An employee's contribution is capped at $5,000 a year.

An Nvidia spokesman didn't immediately respond to a request for comment.

Marvell Stock Falls as Big Expectations Outweigh Solid Earnings

Marvell Technology stock fell in after-hours trading Thursday after the chip designer narrowly beat the market's expectations for its fiscal second quarter.

The company, which both designs custom chips and supplies optical networking technology to connect artificial-intelligence servers, has been a darling of the AI trade in 2026. With that trade stumbling in recent weeks, investors likely wanted a bit more from the results.

Marvell reported adjusted earnings of 94 cents a share for its fiscal second quarter, up from 67 cents a year ago and roughly in line with analysts' consensus estimate of 93 cents, per FactSet. Revenue surged 37% from last year to $2.74 billion, above Wall Street's call for $2.72 billion.

Gap Cuts Sales Outlook on Old Navy Weakness

Gap cut its sales guidance for the year after its largest brand Old Navy weighed on results in the second quarter.

The apparel company is shaking up leadership at Old Navy, bringing in Michael Francis, a retail veteran with experience at Walmart and Target, as chief executive of the brand to try to boost sales.

Gap said Thursday it now expects sales to grow 1% to 1.5% this year, trimming the top end of its prior range of up 1% to 2% as it factors in weaker sales for Old Navy and stronger trends at its namesake brand.

Novo Nordisk Shares Drop as Bank Downgrade Reflects Growth Concerns

Novo Nordisk shares slipped Thursday after Deutsche Bank downgraded the stock's rating on concerns over the company's growth potential.

Shares were 3.3% lower in afternoon Copenhagen trade after Deutsche Bank downgraded the stock to sell from hold and lowered its target price to 265 Danish kroner ($41.32) from 290 kroner.

The stock has tumbled 70% since its June 2024 peak, as the drugmaker has contended with intensifying competition from rival Eli Lilly as well as knockoff versions of its blockbuster Ozempic diabetes and Wegovy weight-loss jabs.

Expected Major Events for Friday 00:30/JPN: Jul Detailed Import & Export Statistics

01:00/PHI: Jul External Trade Performance

04:01/MAL: Jul PPI

07:00/MAL: Jul Money Supply

07:30/THA: Weekly International Reserves

09:59/PHI: Jul Money Supply (M3)

09:59/HK: Jul Tourism figures

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