A stronger-than-anticipated revenue outlook from chipmaker Nvidia has rekindled confidence in the artificial intelligence investment cycle, propelling US equity futures higher during Asian trading on Thursday. However, persistent inflation data continued to pressure the bond market, while investors simultaneously turned their attention to the upcoming Jackson Hole symposium.

Nasdaq 100 futures climbed 0.9%, with Nvidia shares surging 4.7% in after-hours trading, buoying other AI-related names such as Marvell and SanDisk. European equity futures also edged up, the MSCI Asia Pacific Index gained 0.2%, and South Korea's Kospi advanced 1.3%.

Meanwhile, sentiment in the bond market remained cautious. The core PCE price index indicated inflation remains above the Federal Reserve's target, prompting traders to slightly increase their bets on rate hikes this year. Treasury yields moved lower across the curve, with the policy-sensitive two-year yield rising one basis point to 4.22%. Money markets are now fully pricing in a rate increase by December. Fed Chair Warsh is slated to deliver his first major speech at the Jackson Hole conference, with the market closely watching for clarity on his policy stance.

Strategist Dilin Wu at Pepperstone Group noted in a report, "The key isn't simply determining whether he is hawkish or dovish, but how Warsh balances inflation, employment, long-end rates, and the Fed's credibility. If the market begins to worry about policy missteps, US stocks could continue to face pressure."

Japan's Nikkei 225 closed down 0.1% in early trade, while the Topix index edged up 0.1%. The Kospi rose 1.3%.

Nasdaq 100 futures gained 0.9%, with Nvidia up 4.7% after hours.

The dollar spot index was little changed.

The 10-year US Treasury yield rose 2 basis points to 4.66%.

Japan's 10-year yield was flat at 2.890%.

West Texas Intermediate crude fell 0.5% to $81.84 per barrel, while Brent traded near $87.40.

Spot gold advanced 0.6% to $4,619.16 per ounce.

Bitcoin edged up 0.3% to $78,661.46.

Nvidia's guidance far exceeds expectations, underpinning enthusiasm for AI infrastructure investment

During its earnings call, Nvidia provided growth guidance well above market consensus. According to analyst estimates compiled by Bloomberg, the market had anticipated roughly 45% revenue growth for fiscal 2028. However, CFO Colette Kress indicated the company expects revenue growth of approximately 70% for the year, significantly surpassing consensus expectations.

Ivan Feinseth, Chief Investment Officer and Director of Research at Tigress Financial, commented, "This result further supports my optimistic view on the AI investment theme and the broader tech sector. The AI infrastructure cycle is still in its early-to-mid stages and far from peaking."

Still, some investors remain cautious. Jay Goldberg, Senior Analyst for Semiconductors and Electronics at Seaport Research Partners, argued that Nvidia's performance was "not impressive enough." Naoki Fujiwara, Senior Fund Manager at Shinkin Asset Management, pointed out that rising memory prices could exert some pressure on margins.

Asian bond markets weaken broadly as tightening expectations rise

Amid escalating expectations for tighter global monetary policy, bond markets in Australia, New Zealand, and Japan all declined. Australian overnight index swaps data showed that the Reserve Bank of Australia is expected to raise rates this year, while New Zealand's tightening could come as early as next week.

Australia's three-year government bond yield rose seven basis points to 4.67%, New Zealand's two-year yield climbed six basis points to 3.60%, and Japan's two-year yield edged up one basis point to 1.695%. The 10-year US Treasury yield increased 2 basis points to 4.66%. The South Korean won strengthened, following the Bank of Korea's two consecutive rate hikes aimed at curbing inflation risks.

In Japan, the Nikkei 225 closed 0.1% lower in early trading, while the Topix gained 0.1%, showing relatively stable performance overall.

Core PCE remains above target, adding uncertainty to the rate hike path

Investors received the latest US inflation reading on Wednesday. The core Personal Consumption Expenditures (PCE) price index rose 0.2% month-over-month and 3.3% year-over-year, still above the Fed's 2% target. Excluding inflation, consumer spending was flat after recording gains in the previous two months.

This data complicates the market's assessment of the Fed's rate path. Money markets have fully priced in a December rate hike. Given that tech valuations are highly sensitive to interest rate changes, persistently sticky inflation could cap the upside potential for the AI rally.

Dilin Wu at Pepperstone Group reiterated in a report, "The key isn't simply determining hawkish or dovish, but how Warsh balances inflation, employment, long-end rates, and the Fed's credibility. If the market begins to worry about policy missteps, US equities could continue to face pressure."

Commodities: gold rises, wheat hits three-year high

In commodity markets, gold rose 0.6% to approximately $4,620 per ounce, while Brent crude traded near $87.40 per barrel.

According to Bloomberg, wheat prices climbed to a three-year high as ongoing attacks on vessels and infrastructure in the Black Sea region constrain shipments from one of the world's most critical grain hubs, reigniting concerns over food inflation.