Nvidia Statement Helps Steady Stock Market

The S&P/ASX 200 jumped 1.2 per cent to close at 8552.7, breaking a two-day slump that had wiped billions from local valuations and rattled confidence among investors concerned that tech stocks had surged too far, too fast.

Technology companies led the rebound, offering relief after a volatile week driven by fears of an AI-driven bubble. The Australian dollar hovered around US64.86¢ in afternoon trade.

Nvidia’s latest results provided the circuit breaker markets were looking for. The performance underscored the ongoing global appetite for AI infrastructure, particularly high-performance chips and cloud processing capacity. It also helped counter recent scepticism about whether demand could keep pace with the massive investment underway across the sector.

For Australian businesses, especially those operating in technology, logistics, digital services or data-heavy industries, the update was an important signal. Market participants interpreted Nvidia’s outlook as evidence that AI adoption remains in a rapid expansion phase. Its momentum prompted renewed buying in local tech favourites: WiseTech Global, Xero, Technology One and NextDC all posted solid gains. Block surged strongly as investors rotated back into growth names.

Broader optimism was also supported by developments in China where policymakers are weighing new stimulus measures aimed at reviving the country’s long-sluggish property sector. The prospect of increased Chinese demand helped lift prices for commodities, boosting Australian miners. BHP, Fortescue and Rio Tinto all finished higher, while rare earths and uranium producers also advanced.

Property and infrastructure groups benefited as well, with Goodman Group and Charter Hall climbing on stronger investment activity and earnings momentum. Gold miners extended recent gains, reflecting continued appetite for safe-haven assets amid ongoing uncertainty in global markets.

The big four banks contributed to the day’s broad-based rally, with bargain hunters stepping in after recent softness. CBA and Westpac each edged higher, while NAB and ANZ also gained ground. Macquarie Group added to the financial sector’s strength with a solid rise.

For Australian executives and investors, the day’s rebound highlights how tightly local market sentiment remains linked to global AI trends. Nvidia, now one of the world’s most influential companies by market value, continues to act as a bellwether for the AI economy. While concerns linger that expectations may be running ahead of reality, the latest results have—at least for now—helped restore confidence that the sector’s growth trajectory remains intact.