Tech Stocks Rebound in Asia, Europe as Markets Brace for Nvidia Earnings

Global shares mostly moved higher on Tuesday as investors looked beyond Monday’s technology-led sell-off and positioned for Nvidia’s closely watched quarterly earnings, due Wednesday. Markets were also tracking oil prices, Treasury yields and upcoming Federal Reserve signals.

In Europe, Germany’s DAX gained 0.5% to 26,240.76, while France’s CAC 40 rose 0.3% to 8,480.52. Britain’s FTSE 100 edged up 0.1% to 10,869.93. US stock futures pointed to a stronger opening, with S&P 500 futures up 0.3% and Dow futures 0.2% higher.

Asian markets were broadly firmer. Japan’s Nikkei 225 advanced 0.5%, South Korea’s Kospi gained 0.7% and Australia’s S&P/ASX 200 rose 0.7%. Taiwan’s Taiex climbed 0.9%, while Shanghai added 0.2% and Hong Kong was nearly flat. India’s Sensex slipped 0.2% in the session described.

Indian technology stocks remained sensitive to global AI sentiment. Infosys and TCS gained on Tuesday, while Wipro and HCLTech slipped, highlighting the divergence within the sector. Indian IT firms are also being watched amid concerns over proposed higher US H-1B visa costs.

The global technology sector remains under pressure after the S&P 500 fell 0.3% and Nasdaq dropped 0.8% on Monday. Nvidia declined 2.9%, while Micron Technology and Broadcom fell 5.8% and 2.6%, respectively.

Nvidia’s earnings expectations are exceptionally high. Analysts expect revenue of more than $92 billion, with markets seeking evidence that AI infrastructure spending by major cloud companies remains strong.

The results could influence semiconductor and AI-linked stocks worldwide, including sentiment toward Asian chipmakers and Indian technology companies exposed to global technology spending.

Oil prices retreated after fresh US sanctions on Iran. Brent crude fell 2% to $88.74 a barrel, while US crude declined 2.2% to $83.14

Meanwhile, the 10-year US Treasury yield eased to 4.69%. Investors are also awaiting Fed Chair Kevin Warsh’s Jackson Hole speech on Friday, which could provide clues on inflation and monetary policy.