Nvidia results steer Asian stocks as oil extends drop again

Asian stocks were poised to rise as oil near $81 eased inflation pressure, while Nvidia earnings kept AI demand and US rates in focus.

Equity-index futures for Japan, South Korea and Australia advanced after US technology shares recovered. The Nasdaq 100 rose 0.6% on Tuesday, while the S&P 500 gained 0.3%, with Nvidia ending a seven-day losing streak before its Wednesday results.

Crude near $81 changes tone

US crude extended its decline and traded around $81 a barrel, while ICE data showed Brent below $90. The move followed talks between Iran and Oman over an “interim framework” aimed at restoring shipping through the Strait of Hormuz.

The oil retreat coincided with lower government bond yields, a sequence that gave equity markets room to stabilize after persistent inflation and higher rates had weighed on risk appetite. The 10-year Treasury yield fell seven basis points to 4.63% on Tuesday, while a dollar-strength gauge also declined.

Gold moved higher for a sixth session and traded close to $4,670 an ounce, extending a run that left the metal above recent levels cited in the market update. Bitcoin held around $78,900, giving crypto traders fewer directional cues than in rates, oil or equities.

Nvidia anchors the AI trade

Nvidia’s earnings are the main company event for equity investors this week because the chipmaker has become the clearest listed proxy for spending on artificial intelligence infrastructure. Its results will test whether the rebound in chip stocks can extend beyond Tuesday’s recovery.

The company’s shares had fallen for seven straight sessions before the bounce, making the results a near-term reference point for investors in semiconductors, cloud computing suppliers and power-hungry data-center buildouts. A stronger report would give the sector fresh evidence of demand, while a weaker one would make valuations harder to defend.

The week’s policy calendar gives the Nvidia report a wider market setting. Traders are also awaiting the US personal consumption expenditures price gauge and Federal Reserve Chair Kevin Warsh’s Jackson Hole speech on Friday for signals on the path of interest rates.

Kyle Rodda, senior analyst at Capital.com, wrote that “the mountain of event risk” was still weighing on markets, but that easing geopolitical risks and lower oil had offset some caution. His comment linked the day’s relief trade to oil and rates rather than to a single equity catalyst.

Canada tariffs add another risk

Trade policy remained a separate source of uncertainty after Canadian Prime Minister Mark Carney matched new tariffs imposed by President Trump. Carney also announced support for businesses exposed to the dispute with Canada’s largest trading partner.

The Canadian dollar was steady after the announcement, suggesting currency traders had not treated the retaliation as an immediate break in the broader market tone. The risk is that a longer tariff exchange feeds into prices, margins and cross-border investment decisions.

For manufacturers, tariffs can work through costs before they appear in earnings. Companies with North American supply chains may have to absorb higher input prices, raise customer prices or reroute production, each of which carries a different margin effect.

Scenarios turn on oil and AI

If crude holds near current levels or moves lower, the global macro channel would run through inflation expectations and bond yields. For Nvidia, that environment would ease pressure on high-growth valuations, while the wider chip sector would get a cleaner read on demand from earnings rather than from rates.

If oil reverses and the Fed signals less room to cut rates, the mechanism would run the other way: higher inflation concern, firmer yields and tighter financial conditions. Nvidia would then report into a less forgiving market, and semiconductor peers would face a harder test of AI spending assumptions.

A third path runs through geopolitics and trade rather than earnings. If Hormuz shipping talks hold and the Canada-US tariff dispute stays contained, markets may keep separating company results from policy risk; if either front worsens, oil, currencies and industrial shares would likely carry the first adjustment.