Nvidia Drives Tech Sector Upward Amid Concerns Over Macro Backdrop

Nvidia's strong quarterly results have bolstered US equity futures, offsetting losses in other sectors. The tech giant's forecast of a 70% surge in revenue next fiscal year has challenged persistent skepticism about capital expenditure on AI infrastructure.

The outlook has supported companies with exposure to AI infrastructure, such as Micron, Marvell, Sandisk, Palo Alto, and GE Vernova, which have seen their shares rise between 6% and 3% premarket.

However, broader sectors are still lower due to concerns about an unfavorable macroeconomic backdrop. Long-term bond yields remain near their peaks amid widening federal deficits, AI debt issuance, renewed tariffs with Canada and major trading partners, and risks of high energy inflation.