A heavyweight roster of US earnings hits this week, headlined by Nvidia (NVDA), Walmart (WMT), Home Depot (HD), and Target (TGT) โ with results likely to set the tone for global risk appetite heading into the back half of May.
For Australian traders, Nvidia’s result is the most consequential. The AI chipmaker’s guidance has consistently driven sentiment across the ASX’s technology and data centre-adjacent names. A strong NVDA print has previously lifted stocks such as WiseTech Global (WTC) and Xero (XRO) on flow-on sentiment, while a miss tends to weigh on the Nasdaq and drag local tech lower at the ASX open.
Walmart and Target results will give traders a read on the US consumer โ a key input for commodity demand and, by extension, iron ore and energy pricing that underpins major ASX miners like BHP (BHP) and Rio Tinto (RIO). Softening US retail spending could dampen the commodity demand outlook and pressure the AUD/USD, which remains sensitive to global growth signals.
Chinese EV maker NIO and search giant Baidu (BIDU) also report, providing a direct read on Chinese consumer and technology conditions โ critical for Australian traders given China’s role as Australia’s largest export market.
What to Watch
- Nvidia (NVDA): Data centre revenue and AI guidance โ watch for ASX tech reaction at the open following the result
- Walmart & Target: US consumer health โ any demand deterioration could weigh on iron ore pricing and AUD
- NIO & Baidu: China tech sentiment โ a proxy for broader Chinese economic conditions affecting Australian exports
- ZIM Integrated Shipping: Freight rates and supply chain commentary โ relevant to import-heavy ASX retailers
Directional bias: Wait-and-see. With NVDA capable of moving the entire risk-sentiment dial, Australian traders should avoid overcommitting to ASX tech positions ahead of Wednesday’s (AEDT) result.
Source: Seeking Alpha