Asian Stocks Slip Ahead of Nvidia Earnings and Federal Reserve Speech
Asian stocks took a cautious tone ahead of Nvidia's earnings announcement on Wednesday and Federal Reserve Chair Kevin Warsh's speech at Jackson Hole on Friday. South Korea's Kospi fell 2.7% and Japan's Nikkei dropped 0.9%, as investors digested tech headlines, including Alibaba's discounted $10.2 billion share sale to fund its AI push.
The market is looking for Nvidia's quarterly revenue, expected to almost double to about $92 billion, with full-year earnings guidance seen at $103-105 billion. If the growth looks durable, investors typically pay a higher valuation multiple for future earnings, but if they start doubting the quality of revenue, they may pay less.
Nvidia has become a bellwether for AI spending, and its reaction can spill into broader tech sentiment, including Nasdaq futures and Asia's tech-heavy indexes that have already been under pressure.