Global Markets Lifted by Fed Optimism, Investors Await Nvidia Earnings

August 25, 2025 – Equity markets in Asia started the week on a stronger note, supported by expectations that the U.S. Federal Reserve will begin cutting interest rates as soon as September. The prospect of lower borrowing costs has fueled optimism across risk assets, while investors are also watching closely for earnings from Nvidia, the world’s most valuable semiconductor company.

Regional benchmarks advanced on Monday, with gains seen across Japan, South Korea, and Hong Kong. Sentiment was bolstered by Fed Chair Jerome Powell’s remarks at Jackson Hole, which reinforced the view that policymakers are preparing to ease monetary policy. Futures markets now assign more than an 80% chance of a rate cut next month.

Nvidia’s upcoming results remain a focal point for traders, given its $4 trillion market valuation and influence on global technology stocks. Analysts say the company’s outlook could set the tone for equity performance worldwide.

In the bond market, U.S. Treasury yields fell after Powell’s comments, while the dollar retreated against a basket of major currencies. The move provided support to commodities: gold rose to around $3,365 per ounce, and crude oil prices steadied, underpinned by geopolitical risks tied to the Russia–Ukraine conflict.

Still, investors remain cautious. The Fed’s shift toward easing has prompted questions about whether policy is responding primarily to easing inflation or signs of economic softening. Traders are also awaiting key U.S. inflation data later this week, alongside a busy schedule of Treasury issuance. Overall, global markets entered the week with a constructive tone, but strategists note that upcoming data and corporate results will determine whether the rally can extend into September.