Mixed Market Open Expected Amid Strong Nvidia Earnings and Fed Chair Speech

The stock market is set to open with mixed trends following Nvidia's strong earnings report that boosted the technology sector on Wall Street. Futures indicate the Nasdaq may open lower, while Asian markets show varied performance with Japan's Nikkei up 0.5% and South Korea's Seoul index down 1.5%. Dual-listed chip stocks like Tower Semiconductor, Nova, and Camtek are expected to decline between 1% and 3%, whereas Palo Alto Networks is projected to rise nearly 2%. In Tel Aviv, the TA-35 index rose about 1.2% and the TA-90 by 1.5%, supported by chip stocks and software companies such as Palo Alto, Matrix, Nice, and Hailan. The construction sector led gains with a 3% jump ahead of the Bank of Israel's upcoming interest rate decision, where economists see a reasonable chance of a rate cut or no change.

Retail giant Shufersal's shares plunged sharply after reporting a 30% drop in net profit and an 8.6% decline in same-store sales in Q2, erasing approximately 210 million shekels in market value. Similarly, construction and real estate firm Ackerstein Group saw its stock fall sharply due to weak Q2 results and a CEO departure, wiping out about 124 million shekels in value. Real estate developer Best also fell after revealing larger-than-reported irregularities and plans to restate financials.

On Wall Street, Nvidia's market value surged by $443 billion after forecasting 70% revenue growth next fiscal year, easing fears of an AI bubble. This lifted other chip stocks and software firms like Salesforce, Adobe, and Autodesk. Cybersecurity companies Okta and CrowdStrike jumped over 18% following strong earnings and raised forecasts, driven by growing demand for AI-related security products. However, Marvell Technology shares dropped 8% after a mixed earnings report.

In bond markets, US Treasury yields rose ahead of Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole symposium, with the 10-year yield climbing to 4.68% and the 30-year to 5.2%. The US Treasury's recent bond-buying program aims to curb long-term yields but has only partially succeeded. Israeli government bond yields remain stable around 4.4%, supported by lower inflation compared to the US. Currency markets saw the shekel weaken slightly against the dollar to about 2.96. Oil prices edged higher amid stalled negotiations over the Strait of Hormuz, with Brent crude near $89.5 per barrel.

Investors await Warsh's speech for clearer guidance on Fed policy amid market uncertainty. Analysts warn that without concrete plans to control inflation, long-term yields could rise further, impacting stock market sentiment. The probability of a Fed rate hike in September is currently priced at 33%. Meanwhile, Jefferies raised price targets for Okta and CrowdStrike, highlighting accelerating growth and AI-related deal activity as key drivers.