Australian shares seen flat after mixed Wall Street session
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The news: The Australian sharemarket is set to start barely changed after an underwhelming session on Wall Street as AI heavyweight Nvidia dipped and investors awaited inflation data for clues about the path of interest-rate cuts.
The numbers: The Dow Jones index ended 0.16% higher, but the broader S&P 500 lost 0.32% and the tech-heavy Nasdaq declined 0.85%. In the local market, ASX 200 futures were up just 4 points or 0.05% at 8,041 points at 7am AEST on Tuesday.
The context: Nvidia weighed on the S&P 500 and Nasdaq ahead of its quarterly earnings report on Wednesday (Thursday AEST) in what is set to be the US stock market's most closely watched event of the week.
Some investors are worried that anything short of a stellar forecast from Nvidia could shatter Wall Street's rally in AI-related companies, including Microsoft, Alphabet and Meta Platforms.
Friday's highly anticipated Personal Consumption Expenditure data for July, the central bank's preferred inflation gauge, is also in focus as it could provide more insight into the policy easing trajectory. Traders see a 70% chance of a 25 basis point interest rate cut and a 30% chance of a 50 basis point cut in September, according to the CME Group's FedWatch tool.
In the local market, investors will be focused on earnings reports from BHP, Woodside, Coles, and Guzman Y Gomez among others.
The source: Reuters
