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Highlights
ASX 200 futures point to a softer open following mixed global sentiment
S&P 500 lifted by Nvidia's earnings while broader markets trimmed gains
US court temporarily restores Trump-era tariffs, renewing trade tensions
Nvidia Corporation (NASDAQ:NVDA) delivered a strong earnings report that drove gains in the information technology sector, helping lift the S&P 500 (INDEXSP: .INX) despite broader uncertainty. The semiconductor company reaffirmed its quarterly revenue expectations, navigating through export constraints related to sales in China. While Nvidia expects reduced revenue from Chinese markets due to tightened US restrictions, its AI-related business continues to expand, underpinning positive sentiment in the sector.
Mixed Session for Major US Benchmarks
US equity markets ended higher but off their intraday highs, reflecting a cautious tone across traders. The Dow Jones Industrial Average (INDEXDJX: .DJI), NASDAQ Composite (INDEXNASDAQ: .IXIC), and Russell 2000 (INDEXRUSSELL: RUT) all advanced, supported by resilient technology shares and select defensive sectors. However, profit-taking in the latter part of the session moderated earlier gains.
Tariff Uncertainty Returns Following Court Ruling
Trade policy developments remained a key focus after a US federal appeals court reinstated tariffs that were previously blocked by a lower court. The tariffs, imposed under former President Donald Trump’s administration, now temporarily apply to a range of goods including those from Canada and Mexico. The reinstatement may extend tensions in global trade, with US officials indicating an appeal to the Supreme Court could follow. Related export control measures have also been expanded, covering areas such as jet engines and semiconductor software.
Commodities and Currency Trade Narrower Ranges
Commodity markets were subdued, with gold prices little changed and oil prices retreating amid broader demand concerns. Copper prices edged higher, offering some support to material-linked assets. The Australian dollar saw moderate gains against the US dollar, reflecting improving sentiment in regional equity markets including gains in Hong Kong (INDEXHANGSENG: HSI) and Japan (INDEXNIKKEI: NI225).
Sector Movements Show Rotation Into Defensive Areas
Within the S&P 500, the real estate and health care sectors posted the strongest advances, while communication services lagged. Utilities and energy stocks also gained, reflecting a preference for defensive and inflation-sensitive exposures. In contrast, consumer discretionary and industrial names showed limited traction amid lingering concerns over economic momentum.
Economic Data Weighs on Broader Optimism
US economic releases presented a mixed backdrop. First-quarter gross domestic product was revised lower on a quarter-on-quarter basis, driven by a notable decline in exports and softer consumer spending. The data reflected the largest net export drag in historical records. Meanwhile, corporate updates offered contrasting signals, with Salesforce Inc. (NYSE:CRM) increasing its sales guidance for AI-linked services, and HP Inc. (NYSE:HPQ) trimming its profit outlook due to the ongoing impact of tariffs and weaker PC demand.
Central Banks Maintain Cautious Tone
Monetary policy updates remained in focus globally. The US Federal Reserve reiterated its stance that future rate decisions would remain data-dependent. The Bank of Korea and Bank of Mexico both revised their economic projections lower, citing headwinds from trade friction and slowing domestic growth. These signals contributed to renewed caution among global bond , especially in longer-duration instruments, as yields remained elevated.
Local Outlook for ASX 200 Influenced by Global Themes
ASX dividend indicate a softer start for the local benchmark as digest the renewed volatility in trade policy and the broader implications of central bank commentary. With limited domestic catalysts expected during the session and reduced liquidity heading into the weekend, attention may remain focused on offshore developments and their sector-specific impact.
