Strong Earnings Propel U.S. Stocks Higher; Gold Tumbles on Risk-On Mood

Market Overview

U.S. equities took a breather on Wednesday as late-session losses in semiconductor stocks dragged the major indexes into negative territory. However, the mood quickly reversed after hours when NVIDIA delivered an earnings beat, sending its shares up more than 5% and sparking a rebound in futures. This renewed risk appetite prompted investors to rotate out of safe-haven assets like gold and Treasuries. The latest FOMC minutes revealed that policymakers see growing economic uncertainty, reaffirming that holding rates steady remains appropriate. With continued strength in the U.S. dollar, gold is facing significant selling pressure and may break through near-term support levels.

Hot Topics to Watch

● NVIDIA's Q1 Revenue Tops Estimates

NVIDIA‘s Q1 revenue rose 69%—its slowest growth in two years but still above expectations—despite ongoing export restrictions. The company guided for a potential $8 billion revenue hit from H20 sales in Q2, though total revenue is expected to remain in line with forecasts. Shipments of the new Blackwell Ultra chips are set to begin in Q2. CEO Jensen Huang emphasized the full-scale rollout of the Blackwell NVL72 AI supercomputer and reiterated that China remains one of the world’s largest AI markets. Shares surged over 5% in after-hours trading.

● Strong Demand for 5-Year Treasury Auction

Amid heightened scrutiny over sovereign debt demand—particularly for U.S. and Japanese bonds—the latest 5-year U.S. Treasury auction stood out. Several key indicators showed strength, with overseas demand hitting a record high. Primary dealers, responsible for purchasing any unsold supply, received just 9.2% of the allocation—marking the second-lowest level on record after the 8.8% seen on January 23, 2023. The results highlight robust real-money interest in U.S. government debt.

Key Events to Watch

• 20:30 GMT+8: U.S. Initial Jobless Claims (week ending May 24), Revised Q1 GDP Annualized QoQ

• 22:00 GMT+8: U.S. Pending Home Sales Index MoM (April)

• 00:00 GMT+8: U.S. EIA Crude Oil Inventories (week ending May 23)