Nvidia’s Growth Cools, Adani Turmoil Drags Indian Markets

Asian markets dip as Nvidia’s growth slows, and Adani turmoil drags Indian Markets amid U.S. fraud charges. Regional performance varies, and commodities are gaining slightly.

Tech Giants and Nvidia Slowdown

Nvidia dampened investor sentiment by reporting third-quarter earnings with a 94% year-on-year revenue surge to $35.08 billion. While impressive, this marked a slowdown from previous quarters’ triple-digit growth, raising questions about future demand for AI chips. Net income nearly doubled to $19.3 billion from $9.24 billion a year ago, yet Nvidia’s shares slipped 1% in pre-market trading.

Japan’s Nikkei 225 dropped 0.81%, with chip supplier Advantest shedding 3%, while the broader Topix lost 0.54%. In contrast, South Korea’s Kospi bucked the trend, rising 0.38%, thanks to a 2.53% surge in Samsung Electronics. This surge helped offset losses in other tech stocks like SK Hynix, down 0.41%.

Adani Group Plummets Amid Legal Troubles

Indian markets were gripped by a sharp sell-off in Adani Group stocks following U.S. federal charges against Gautam Adani, the conglomerate’s chairman, for alleged bribery and fraud. Shares of flagship Adani Enterprises plunged 20%, while Adani Green Energy and Adani Power fell 18.19% and 15%, respectively. The broader Nifty 50 index and BSE Sensex declined by around 0.8%, reflecting broader investor concerns.

Nvidia’s Growth Cools, Adani Turmoil Drags Indian Markets

Regional Market Performance

Hong Kong’s Hang Seng Index dropped 0.27%, with losses in technology and property shares. Mainland China’s Shanghai Composite showed resilience, up 0.02%, as investors weighed recent economic stabilization measures against geopolitical tensions. The CSI300 fell 0.22%.

Australia’s ASX 200 dipped 0.07% as mining and banking sectors struggled amid fluctuating commodity prices.

Commodities and Bond Yields

Gold prices edged up 0.24% to $2,658.35 per ounce, and silver gained 0.48% to $31.2, showing mixed results in commodities. Brent crude rose 0.16% to $72.94 per barrel, while WTI crude climbed 0.19% to $68.9.

In the bond market, yields were stable. The U.S. 10-year yield was 4.406%, the UK 10-year yield was 4.469%, and Germany’s 10-year Bund yield was 2.341%.

Looking Ahead

Investors will focus on key U.S. economic data, including unemployment claims and existing home sales figures, scheduled for later today. These reports will provide further clues on the Federal Reserve’s policy trajectory amidst slowing global growth.

This mixed landscape of subdued tech growth and heightened corporate risk underscores the fragility of global markets amid geopolitical and macroeconomic uncertainties.

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