ASX to drop after Nvidia slump, Trump tariffs rattle Wall Street

The news: The Australian sharemarket is set to open lower, tracking a fall on Wall Street where a drop in AI heavyweight Nvidia and US President Donald Trump tariff plans weighed down sentiment.

The numbers: Updated at 7.25am AEDT:

• ASX futures: down 70 points or 0.85% at 8,176 points
• Wall Street: Dow Jones down 0.25%, S&P 500 down 1.09%, Nasdaq down 2.02%
• Europe: FTSE 100 up 0.28%, CAC 40 down 0.51%, DAX down 1.07%
• Spot gold: down 1.46% to USD2,873.70 per ounce
• Oil prices: Brent up 1.92% to USD73.92/bbl, US WTI up 2.35% to USD70.23/bbl
• AUD: down 1.07% at 62.38 US cents
• Bitcoin: down 1.52% to USD82,835.77.

The context: All three major US stock indices traded lower, led by a 6% slump in Nvidia, a day after the US computer chip supplier gave a weaker-than-expected quarterly margin forecast. Other chipmakers, including Broadcom and Advanced Micro Devices also fell, pulling the Philadelphia chip index down almost 4%. Investors also fretted after Trump said tariffs on Mexico and Canada will go into effect on Tuesday and imposed an additional 10% tariff on imports from China. Investors are now focused on monthly Personal Consumption Expenditure data, which is the Federal Reserve's preferred inflation gauge, due later on Friday.

What to watch: Earnings from Harvey Norman, Endeavour Group, TPG Telecom, Pexa and Life360, among others.