Nvidia slides after results, dollar weakens, gold steady

Nvidia fell more than 3% in after-hours trading after strong quarterly results were overshadowed by weaker data centre revenue and questions over China sales. US indices slipped in futures trading, while Asia’s TSMC and Samsung moved lower, and Chinese chipmakers SMIC and Cambricon gained strongly. The dollar edged down against major peers, gold held at $3,394 per ounce, and Brent crude settled at $68.05 a barrel after US crude inventories dropped.

Equities

The FTSE 100 closed 0.1% lower on Wednesday, extending losses from earlier in the week as pressure on heavyweight financial stocks weighed on the index. Banks were among the weakest performers, with NatWest ending the session down 2.5%. The FTSE 250 slipped 0.3%, pulled lower by Hochschild Mining, which dropped 9.3% after the miner cut its full-year output forecast at its Mara Rosa mine in Brazil by more than half.

JD Sports Fashion moved in the opposite direction, gaining 3.6% after reporting signs of stabilisation in its US operations following a sharp sales decline in the previous quarter. Insurer Prudential outlined a $1.1 billion share buyback plan and promised higher dividends over the next two years, but its shares fell 1.7% by the close as initial gains faded.

Across the Atlantic, US markets were steadier. The S&P 500 rose 0.24% to 6,481.40 points, setting a fresh record high close. The Dow Jones Industrial Average climbed 0.32% to 45,565.23 points, while the Nasdaq added 0.21% to 21,590.14 points.

Nvidia remained the focus of investor attention ahead of its quarterly results due after the closing bell. The stock fluctuated between gains and losses throughout the day before ending 0.1% lower. With Nvidia now representing about 8% of the S&P 500, its results are expected to influence broad market sentiment and index fund returns.

Microsoft advanced nearly 1% on Wednesday, while Meta Platforms slipped almost 1%. MongoDB posted the most dramatic move, soaring 38% after lifting its annual profit forecast. J.M. Smucker fell 4.4% after missing quarterly profit expectations, with its Jif peanut butter brand under pressure.

Forex & Commodities

The US dollar held steady in early Thursday trading, with the dollar index at 98.15 after two days of declines. The euro was little changed at $1.164, while sterling edged slightly higher to $1.351. Against the Swiss franc, the dollar slipped to 0.8015, and it also moved lower against the yen to 147.1. In offshore trading, the dollar was marginally weaker at 7.149 against the yuan. The Australian dollar was steady at $0.6507 following gains earlier in the week.

Gold traded firmly on Thursday morning, holding at $3,394 per ounce after touching its highest level since 11 August earlier in the session. The metal has been supported by a softer dollar and expectations of lower US interest rates, with traders awaiting the release of the Personal Consumption Expenditures (PCE) price index on Friday. Economists polled by Reuters expect the index to show a 2.6% annual increase for July, unchanged from June. Silver was up at $38.86 per ounce, platinum at $1,352, and palladium at $1,098.

Oil prices closed higher on Wednesday after US government data showed a larger-than-expected drawdown in crude inventories. Brent crude settled at $68.05 a barrel, while West Texas Intermediate ended the session at $64.15. The Energy Information Administration reported a 2.4 million barrel decline in US crude stockpiles to 418.3 million barrels last week, against forecasts for a smaller fall. Gasoline stocks also declined, while distillates slipped more than anticipated.