Australian shares are set to open slightly higher after strong earnings from Nvidia helped drive a technology-led rally on Wall Street. The chip giant surged 7.5%, reinforcing confidence in the AI boom, while investors now turn their attention to Federal Reserve Chair Kevin Warsh’s first Jackson Hole speech for clues on the outlook for US interest rates.
Wall Street ended the session higher, led by technology stocks.
The Nasdaq gained 1.57%, the S&P 500 rose 0.72%, while the Dow Jones added 0.2%.
The strongest move came from Nvidia, whose shares jumped 7.5% after its latest earnings strengthened investor confidence in demand for artificial intelligence chips and infrastructure.
Nvidia keeps the AI rally alive
Nvidia has become one of the most important companies in the global AI investment story.
Its processors are widely used to train and run advanced artificial intelligence systems, meaning strong results from the company are often interpreted as a positive signal for the broader technology sector.
The latest rally suggests investors remain confident that spending on AI infrastructure will continue despite concerns about valuations and the scale of investment already committed across the sector.
ASX expected to edge higher
The positive lead from Wall Street is expected to support the Australian share market at the open.
The ASX is tipped to begin Friday modestly higher, with global technology sentiment and broader risk appetite helping local equities.
Investors will also continue to watch commodity prices, interest-rate expectations and domestic economic data.
Attention turns to Jackson Hole
The next major event for global markets will be Kevin Warsh’s speech at Jackson Hole on Friday US time.
It will be his first appearance at the high-profile central banking gathering as Federal Reserve Chair.
Markets will be looking closely for signals on the future direction of US interest rates following recent inflation data and movements in bond yields.
Any indication that rates could remain higher for longer may weigh on equities, while a more dovish tone could provide further support for risk assets.
Australian dollar near 72 US cents
The Australian dollar also moved slightly higher overnight and is trading just below US72 cents.
A stronger Australian dollar can help reduce the cost of imported goods, although it can also place some pressure on exporters by making Australian products more expensive overseas.
AI remains the market driver
For now, the mood remains positive.
Nvidia’s strong result has once again demonstrated how heavily global markets are relying on the AI investment cycle.
But the next move may depend less on technology earnings and more on monetary policy.
Wall Street is still being powered by AI, but Jackson Hole could determine whether the rally has room to continue.
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