Trading Day: Another tech tonic, Nvidia delivers

ORLANDO, Florida, Feb 25 (Reuters) – Stocks advanced solidly for a second day on Wednesday, powered again by a rebound in tech, while investors’ appetite for assets that have been beaten down recently also extended to precious metals and bitcoin.

More on that below. In my column today, I look at the ‘AI doom bubble’ and the proliferation of doomsday scenarios sketched out in long-form blogs online that have gone viral. Perhaps it’s time to deflate this particular bubble?

If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today.

1. EXCLUSIVE-DeepSeek withholds latest AI model from USchipmakers including Nvidia, sources say 2. US tariff rate to hit 15% or more for some nations,Greer says 3. Maybe the global economy isn’t all about AI: Mike Dolan 4. In surprise move, Japan’s government taps tworeflationists for BOJ board 5. Trump briefly lays out case for possible attack on Iran

Today’s Key Market Moves

* STOCKS: Wall Street posts solid gains for second day ina row. Taiwan, South Korea, Brazil and Japan’s Nikkei all hitnew highs. * SECTORS/SHARES: Nvidia shares +4% in after-hours tradefollowing Q4 results. U.S. tech +1.8%. Coinbase +13.5%, SuperMicro Computer +8%. Lowe’s -5.5% on cautious forecast, draggingreal estate -0.7%. * FX: China’s onshore yuan rises for ninth day in a row,best run since 2010. Korean won biggest global FX gainer, +1%.Dollar slips, yen biggest G10 FX loser again. Bitcoin +8%. * BONDS: U.S. yields rise a touch, more so at belly of thecurve following a weak 5-year auction. * COMMODITIES/METALS: Oil up marginally, silver +4%,platinum +6%.

Today’s Talking Points

* Nvidia delivers

Nvidia’s quarterly earnings now rival U.S. jobs and inflation data as among the most important market-moving releases in the world. The most valuable company in history, with a market cap of over $4 trillion, has just released its Q4 results.

Once again, it looks like Nvidia delivered. Revenue of $68.13 billion beat forecasts, and the company said it expects that to rise to $78 billion this quarter, which would be higher than analysts’ average estimate of $72.6 billion.

* Surprises and non-surprises in Japan

Japan’s government on Wednesday nominated two academics to join the Bank of Japan’s board, both essentially seen as policy doves. This may come as a disappointment to those who thought the BOJ is finally on the path to policy normalization.

It isn’t that surprising though. Prime Minister Sanae Takaichi was elected on a promise to spend big, and has nominated economic ‘reflationists’ to several other roles in government. What’s more surprising is ex-BOJ chief Haruhiko Kuroda calling for more rate hikes and tighter fiscal policy.

* EM bullishness off the charts

Even the biggest emerging market bulls couldn’t have predicted how explosive the start to this year would be. South Korean stocks are the standout, up 45% year to date, but the MSCI EM index is up 14%, and MSCI Asia ex-Japan is up 12%.

Financial conditions across EM are the loosest in four years, according to Goldman Sachs, with a virtuous cycle of strong domestic equity markets, a soft dollar and stable Treasuries feeding on itself. One might wonder, what is the circuit breaker, and when will it be tripped?

What could move markets tomorrow?

* South Korea interest rate decision * Taiwan current account (Q4) * Bank of Japan board member Hajime Takata speaks * Euro zone consumer, business sentiment indices (February) * European Central Bank President Christine Lagarde speaks * Canada current account (Q4) * U.S. Treasury sells $44 billion of 7-year notes at auction * U.S. weekly jobless claims * Federal Reserve Vice Chair for Supervision Michelle Bowmantestifies on regulation to Senate

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Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

(Reporting by Jamie McGeever; Editing by Bill Berkrot)