ASX Set to Surge as S&P 500 Bounces Back on Strong Nvidia and Tesla Performances

2 min read | July 23, 2024 10:07 AM AEST | By Team Kalkine Media

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ASX Set to Surge as S&P 500 Bounces Back on Strong Nvidia and Tesla Performances — Image source: shutterstock

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Australian shares are set to rise, following gains seen overseas. The Nasdaq Composite surged by 1.6% at the beginning of the week, with quarterly results from Alphabet and Tesla on the horizon. Meanwhile, the S&P 500 climbed 1.1% to 5564.41.

Nvidia soared by 4.8% and Tesla by 5.2%, which bolstered the NYSE Fang + Index, resulting in a 2.1% rally. In contrast, CrowdStrike continued its decline, dropping another 13.5%.

"Tesla remains the most held stock on the eToro platform in Australia, despite disappointing Q1 results," said Josh Gilbert, a market analyst at eToro. "This week's results are crucial for investors."

"AI will be a major focus again, with Elon Musk being a pioneer in the AI revolution," Gilbert added. "Key areas of interest will include margins, Cybertruck production, robotaxi developments, and overall guidance."

Megacap tech companies are anticipated to drive earnings growth, according to FactSet’s John Butters. Nvidia, Amazon, Meta, and Alphabet are projected to be significant contributors to the S&P 500's year-over-year quarterly earnings growth.

"These four 'magnificent seven' companies are expected to report a combined year-over-year earnings growth of 56.4% for Q2. Excluding these companies, the earnings growth rate for the remaining S&P 500 companies would be 5.7%. The overall blended earnings growth rate for the entire S&P 500 for Q2 2024 is projected at 9.7%."

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