Nvidia Earnings Fuel Tech Stocks Amid Market Volatility: The global markets experienced weekly fluctuations
as economic and political developments impacted stocks and currencies.
Meanwhile, Nvidia’s earnings had a substantial impact on the technology sector.
While the company’s profits fueled gains for tech stocks on Wall Street,
some Asian markets declined due to concerns over U.S. tariffs and global economic developments.
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Asian Markets See Modest Gains Amid Global Market Uncertainty
Asian stocks posted slight gains on Thursday as investors assessed the impact of new tariffs imposed
by U.S. President Donald Trump and reacted to Nvidia’s earnings results.
Markets in Australia, Hong Kong, and Japan saw gains, while South Korea experienced a slight decline.
Meanwhile, Chinese markets fluctuated at the opening of trading.
U.S. S&P 500 and Nasdaq 100 futures stabilized after posting modest gains on Wednesday.
However, Nvidia shares slipped in after-hours trading as its strong financial
results failed to meet investors’ exceptionally high expectations.
Trump’s Tariffs Increase Market Volatility
On Wednesday, Trump announced that his administration would impose a 25%
tariff on the European Union while confirming that previously announced
tariffs on Mexico and Canada would take effect on April 2.
However, his contradictory statements created uncertainty among investors,
leading to sharp fluctuations in the currency markets.
The U.S. dollar strengthened, limiting losses for the Canadian dollar and the Mexican peso
but adding pressure on stocks and cryptocurrencies.
Marvin Loh from State Street commented:
“Unclear statements about the timing and extent of tariffs keep investors on edge.
The debate continues over whether Trump will revise his plans or if this marks the start of stricter trade policies.”
Nvidia Earnings Boost Tech Sector on Wall Street
Tech stocks saw substantial gains on Wall Street following Nvidia’s
earnings announcement amid expectations that profits would revive the AI-driven rally.
Nvidia reported $11 billion in revenue from its Blackwell series chips in Q4,
calling it “the fastest product launch in company history.”
Darren Nathan from Hargreaves Lansdown stated:
“Nvidia successfully dispelled concerns about Blackwell chip production and potential demand threats,
delivering revenue and earnings that exceeded expectations, along with strong guidance for the current quarter.”
U.S. Market Performance Post-Nvidia Earnings
At the close of Wall Street trading, the S&P 500 remained unchanged,
while the Nasdaq 100 increased by 0.2%.
In contrast, the Dow Jones fell by 0.4%, reflecting mixed market sentiment.
Meanwhile, the 10-year U.S. Treasury yield declined by four basis points to 4.25%,
signaling a shift in investor expectations.
The U.S. dollar index rose by 0.1%, highlighting its resilience amid market fluctuations.
Fund Managers Reassess Strategies
In recent years, the dominance of major technology companies has posed a challenge for fund managers.
As these companies’ stocks declined by more than 10% from their peaks,
new opportunities have begun to emerge for identifying future market leaders,
according to Lisa Shalett from Morgan Stanley.
Promising Sectors:
Financial services
Domestic industries and energy
Mining, media, and entertainment
AI-powered healthcare
Shalett explained that fund managers have reduced their allocations to major tech stocks
to their lowest levels since the global financial crisis,
contributing to improved fund performance,
especially with the decline of the “Magnificent Seven” stocks (Apple, Alphabet, Nvidia, Amazon, Meta, Microsoft, Tesla).
This shift has boosted the performance of active investors,
with 49% of actively managed mutual funds and exchange-traded funds
(ETFs) linked to the S&P 500 outperforming the index in 2025,
According to Morningstar Direct, this rate is significantly higher than the 17% average over the past decade.
Bitcoin Declines Amid ETF Outflows
Bitcoin dropped to $84,000, marking a 20% decline from its peak last month,
as increased outflows from exchange-traded funds (ETFs) led to additional selling pressure.
Key Economic Data Ahead
Investors closely monitor key economic reports and meetings that could shape global market trends in the coming days.
Upcoming data and events include:
- Eurozone Consumer Confidence Index
- U.S. Gross Domestic Product (GDP)
- Initial U.S. Jobless Claims
Additionally, G20 finance ministers and central bank governors are meeting in Cape Town,
expecting policy decisions that could shape financial markets in the coming period.
With ongoing market volatility, investors closely watch monetary
and trade policy shifts and their implications for the global economy.
Conclusion
Global markets experienced a volatile week, with Asian stocks reacting to new U.S. tariffs,
while Nvidia’s earnings supported the tech sector on Wall Street.
However, concerns remain about a potential global economic slowdown and changes in trade and monetary policies.
As markets anticipate upcoming G20 decisions and key economic developments,
investors remain in a wait-and-see mode for further indications on the future direction of global markets.
Nvidia Earnings Fuel Tech Stocks Amid Market Volatility