**ASX Futures Flat as Wall Street Gains on Nvidia Surge Ahead of Fed Meeting**
*Original reporting by Timothy Moore, The Australian Financial Review, expanded and supplemented for context.*
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**Overview:**
Australian markets opened cautiously on Tuesday, signaling a flat start for the ASX as global investors braced for pivotal monetary policy decisions from the US Federal Reserve scheduled later this week. Wall Street, on the other hand, gained ground, driven by robust earnings from Nvidia which lifted overall sentiment for the technology sector. This comes at a time when uncertain macroeconomic signals and rapid shifts in global capital flows are heightening volatility across equity and forex markets.
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**Australian Market Snapshot:**
– The SPI 200 futures traded unchanged at 7,734 ahead of the local session, suggesting a muted open for Australian equities.
– The previous session saw the S&P/ASX 200 Index closing with a minor loss, reflecting investor caution ahead of key global events.
– Market participants are keenly awaiting any signals from the Fed that may indicate the direction of future US interest rates, as even subtle shifts in policy language could reverberate through currencies, equities, and bond yields.
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**Wall Street Recap:**
Uplifted prominently by a rally in technology shares, the major US market indexes gained in the previous trading session.
– The Nasdaq Composite posted significant gains, largely attributed to solid corporate results in the tech sector.
– Nvidia shares soared after the company exceeded quarterly earnings expectations, igniting optimism about ongoing advancements in artificial intelligence and chip technology.
– The S&P 500 and Dow Jones Industrial Average also advanced, with investors largely brushing aside recent worries about inflationary pressures and macroeconomic uncertainty.
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**Key Factors Shaping Market Mood:**
1. **Tech Earnings Seasons**
The earnings calendar remains the primary driver of Wall Street sentiment.
– Nvidia delivered a standout quarterly report, confirming robust demand for its AI-centric semiconductors.
– Other major tech firms, including Microsoft and Alphabet, also reported better-than-expected results, underscoring the resilience of the sector amid economic headwinds.
– Strong earnings allow investors to set aside some concerns regarding higher borrowing costs and inflation.
2. **Upcoming US Federal Reserve Policy Decision**
The main event this week is the two-day Federal Open Market Committee (FOMC) meeting. Market consensus expects the Fed to hold rates steady, but attention will focus on any changes in Chairman Jerome Powell’s tone during the subsequent news conference.
Key areas of focus include:
– Whether the Fed sees enough evidence of easing inflation to maintain rates or even hint at future cuts
– How policymakers view ongoing labor market strength and persistent price pressures
– Any forward guidance on balance sheet management and the trajectory of liquidity provision
3. **Global Economic Uncertainties**
A range of global risks continues to weigh on sentiment.
– Ongoing geopolitical conflicts, particularly the situation in Ukraine and tensions in the
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