Asian Stocks Retreat on Nvidia Guidance, Tech Sector Pressured | Investing.com
Asian stocks retreated on Thursday, pressured chiefly by losses in the technology sector following underwhelming guidance from market darling Nvidia. Despite Nvidia beating quarterly earnings expectations, concerns over the tech sector rattled markets. Tech-heavy Asian bourses were the worst performers, with chipmakers like TSMC and Samsung experiencing significant losses. However, broader losses in Asian markets were relatively muted, as investors looked towards sectors poised to benefit from lower interest rates.
Analysis:
The decline in Asian stocks was mainly driven by underwhelming guidance from Nvidia, a key player in the tech sector. This led to losses in chipmakers and broader technology stocks, causing concerns about the future of the "AI trade" that had supported the sector. However, the overall market impact was limited, as investors shifted focus to sectors expected to benefit from lower interest rates. The upcoming September rate cut by the Federal Reserve is likely to support stock markets in the coming months.