Nvidia’s share price fell more than 8 per cent in after-hours trading. All three main indexes on Wall Street fell ahead of the release, which came after the market closing bell.
In Asia tech was among the worst performers, with chip-makers taking a hit. SK Hynix fell more than five percent in Seoul, where Samsung was also down more than three percent.
Taipei-listed TSMC, a key producer of semiconductors, sank more than 2 per cent and Tokyo Electron was down 1.8 per cent in Tokyo.
That weighed on broader markets, with Seoul, Shanghai, Sydney, Taipei, Manila, Bangkok and Wellington all in the red. Tokyo was marginally lower, though Hong Kong, Singapore, Mumbai and Jakarta edged up.
London was flat at the open while Paris and Frankfurt were up.
“As the bellwether for the tech industry, which now touches nearly every aspect of global business and our daily lives, Nvidia’s performance is scrutinised like a crystal ball for the broader market and the US economy,” said independent analyst Stephen Innes.
“So when this flagship takes a hit, it has the potential to drag the entire fleet down with it.
“Nvidia continues its high-wire act, defying gravity for the seventh straight quarter by beating expectations on both the top and bottom lines. But in the topsy-turvy world of post-report trading, even a solid earnings beat wasn’t enough to keep investors smiling.”
Attention now turns back to the US economy, with data this week and next possibly playing a role in how far the Federal Reserve goes in cutting interest rates.
Boss Jerome Powell said Friday that they would have to start coming down as the jobs market softens and inflation eases, but he did not provide any guidance on how big an expected reduction in September will be.
Readings on gross domestic product, jobless claims and personal consumption expenditure – the Fed’s favoured gauge of inflation – are among this week’s readings, while the crucial non-farm payrolls report is due next Friday.
Below-forecast results on these could firm up the case for a half-percentage-point cut, double what is expected at the moment.
Source: CNA
