Asian Tech Leads Global Equities Higher Ahead of Nvidia’s Earnings

A risk-on tone is supporting a global rebound in stocks and commodities, as the markets await Nvidia’s report for the next move in Tech.

Key Takeaways

• Risk-On Rebound Builds as Tech Seeks Direction: The AI scare trade faces an Nvidia earnings test as the semiconductor-versus-software theme continues to play out, and Asian chip supply chain names keep leading stock market gains.

• Software Sell-Off Has Become Too Broad: AI tools are a real threat to margins in consumer-facing software, but many mission-critical enterprise platforms (such as cybersecurity) retain strong moats through switching costs, infrastructure integration, and network effects.

• Consumer Gloom Runs Deep: Despite a marginal improvement in the headline reading, the Consumer Sentiment Index remains at historical lows. Deep weakness concentrated in lower-income households, easing inflation expectations, and rising job insecurity show a mix that looks more disinflationary than inflationary and supports the bond-bull case.