Global equity markets showed strong momentum on Thursday, buoyed by robust earnings from NVIDIA and a pivotal court ruling in the U.S. that nullified a key aspect of the Trump-era trade policy. Investors also digested a flurry of macroeconomic data, central bank commentary, and geopolitical developments, especially in the semiconductor sector.

APAC Markets Climb on Optimism

Asia-Pacific (APAC) stocks ended mostly in the green, with investor sentiment bolstered by two major developments. First, a standout earnings report from chip giant NVIDIA (NASDAQ: NVDA) triggered a rally across technology shares. Second, the U.S. Court of International Trade in Manhattan blocked former President Donald Trump’s Liberation Day tariffs, a move seen as easing global trade tensions—especially with key Asian economies.

The NVIDIA-fueled optimism helped offset concerns surrounding escalating U.S.-China tech tensions, which re-emerged following new U.S. export restrictions.

NVIDIA Smashes Expectations Despite Hefty Charge

Shares of NVIDIA surged 4.9% in after-hours trading following a blowout earnings report that beat both top and bottom-line expectations. Despite incurring a staggering $4.5 billion charge in Q1, the company’s results were a testament to its dominance in AI and data center technologies.

The tech behemoth reported a bullish Q2 revenue outlook of $45.0 billion—slightly shy of consensus estimates at $46.4 billion but still viewed favorably by the market given the broader macroeconomic uncertainty. The strong results reaffirm NVIDIA’s critical role in the ongoing AI revolution and its importance as a bellwether for global tech sentiment.

Tensions Escalate: U.S. Tightens Tech Exports to China

While NVIDIA’s performance inspired investor confidence, geopolitical tensions added a layer of complexity to the bullish narrative. According to reports from the Financial Times, former President Donald Trump has instructed U.S. chip designers to halt sales to China, marking a new front in the U.S.-China tech standoff.

Further tightening came via the New York Times, which reported that the U.S. is also pausing exports of aircraft engine technology and chip design software to Chinese firms. These measures are expected to strain already fragile supply chains and raise questions about the long-term prospects for U.S. semiconductor firms with heavy exposure to China.

Fed in Wait-and-See Mode: FOMC Minutes Reveal Patience

On the monetary policy front, the release of the latest Federal Open Market Committee (FOMC) minutes revealed that U.S. policymakers are leaning toward patience. Participants generally agreed that they are well-positioned to wait for greater clarity on inflation and the broader economic outlook before making further policy adjustments.

This reinforces market expectations that the Federal Reserve is unlikely to cut rates in the near term, opting instead to observe evolving data before acting.

Europe Poised for a Rebound

European equity futures pointed to a strong open, with Euro Stoxx 50 futures up 1.4%, signaling a potential reversal after Wednesday’s 0.7% loss in the cash market. Investors in the region are likely taking cues from the buoyant mood in the U.S. and APAC, as well as the easing of trade tensions via the U.S. court ruling.

Key Data and Events on the Radar

Looking ahead, a packed economic calendar and earnings slate are set to shape investor sentiment:

• Macro Data Releases:
  • Spanish Retail Sales
  • Italian Industrial Sales
  • U.S. GDP 2nd Estimate (Q1)
  • U.S. Core PCE Prices (Q1)
  • U.S. Weekly Jobless Claims
• Central Bank Watch:
  • South African Reserve Bank (SARB) policy announcement
  • Speeches from key Fed officials including Barkin, Goolsbee, Kugler, and Daly
  • Comments from Bank of England’s Bailey and Breeden
• Public Holidays:
  • Swiss and Scandinavian markets will observe holidays, leading to thin trading in those regions.
• Earnings Reports:
  • Key corporate results are expected from Marvell Technology, Costco, Dell, Gap, Ulta Beauty, Foot Locker, Best Buy, and Kohl’s.

Investor sentiment remains delicately balanced. On one hand, strong corporate earnings and legal pushbacks against trade restrictions provide reasons for optimism. On the other, geopolitical tensions and uncertain monetary policy paths continue to weigh on risk appetite.

As markets navigate this intricate web of earnings, politics, and policy, the coming days promise to be pivotal—particularly for technology stocks and global trade-sensitive sectors.