Nasdaq futures up 1.6% as Nvidia drives tech rally


Nasdaq futures rallied and chipmakers soared as a bullish sales forecast from Nvidia Corp ignited gains in companies linked to the frenzy for artificial intelligence (AI).
Nvidia shares soared 23% in US premarket trading after its forecast for surging revenue surprised even the most optimistic analysts on Wall Street, propelling the company to the cusp of a $1 trillion market value. Contracts on the Nasdaq 100 added 1.6% and chipmaker ASM International NV led gains in the Stoxx 600 Index.
If the premarket gain holds, Nvidia’s value would rise by about $180 billion, ranking among the biggest one-day pops in history. The company, whose shares have doubled this year, is at the forefront of an explosion in spending on artificial intelligence computing following the success of ChatGPT and other tools.
It’s another sign that investors are willing to pile into promising tech stocks, despite the growing worries about China’s economy and a potentially catastrophic US debt default. Fitch Ratings warned that the US’s AAA rating is under threat, though it still expect politicians will reach an agreement before time runs out.
Treasury yields were steady, with yields on the two-year and 10-year note holding near the highest since mid-March. The Stoxx Europe 600 was little changed in London  and S&P 500 futures gain 0.5%.
While Nasdaq 100 futures rose 1.6%, the MSCI Asia Pacific Index fell 0.8% and the MSCI Emerging Markets Index also drops 0.6%. The Bloomberg Dollar Spot Index was little changed and the euro fell 0.2% to $1.0733.
While the Japanese yen was little changed at 139.43 per dollar, the offshore yuan fell 0.3% to 7.0845 per dollar and the British pound was little changed at $1.2373. The yield on 10-year Treasuries was little changed at 3.75% and Germany’s 10-year yield was little changed at 2.48%.

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