S&P Hits Record High but Pulls Back After Hours; Safe-Haven Demand Lifts Gold

Market Overview

Ahead of Nvidia‘s earnings release, U.S. equities were volatile during the session, with the S&P 500 barely closing at a new record high. However, after-hours trading turned lower as Nvidia’s forward guidance disappointed, with the stock dropping as much as 5% and dragging the broader market down.

Expectations of Fed policy easing pushed Treasury yields lower across the curve, with the 2-year yield falling more than 6 basis points. In Europe, fiscal concerns in France drove jitters in sovereign debt markets, sending the 30-year OAT yield to a 14-year high.

The U.S. Dollar Index staged a sharp intraday reversal, sliding 0.60% from session highs. Rising safe-haven demand—driven by Frances fiscal issues and ongoing turmoil around Fed appointments—helped gold gain 0.11%. Meanwhile, EIA data showed U.S. crude inventories declined, lifting WTI crude nearly 1.4% intraday. Chinese commodity futures mostly ended lower in overnight trading.

Hot Topics Outlook

Nvidias Guidance Falls Short

Q2 revenue growth slowed to its weakest pace in over two years but still beat analysts estimates, while EPS growth accelerated to 54%. Nvidia did not record any H20 sales in China during the quarter. Data center revenue missed expectations for a second straight quarter: Blackwell chip sales rose 17% QoQ, but overall data center compute revenue fell 1% due to a $4 billion drop in H20 sales. Gaming revenue surged 49%, reaching another record. Q3 revenue guidance excluded potential H20 exports to China. CEO Jensen Huang suggested China could still represent a $50 billion opportunity this year. Nvidia also announced an additional $60 billion share repurchase authorization. Shares fell as much as 5% after hours.

Japanese Equities Extend “Ninja-Style Rally”

Japanese stocks have surged more than 34% since April, supported by capital rotation away from the U.S., a tariff agreement with Washington less severe than expected, and growing investor confidence in corporate governance reforms. This rally has drawn participation from foreign funds, domestic institutions, and retail investors alike. Foreign inflows alone totaled $35.7 billion since April, with top global funds including Bridgewater repositioning into Japanese equities.

Key Focus

20:30 GMT+8 – U.S. Initial Jobless Claims (week ending Aug 23)

20:30 GMT+8 – U.S. Q2 GDP Annualized QoQ (Revised)

20:30 GMT+8 – U.S. July Pending Home Sales (MoM)