Global Markets Rally as Nvidia Earnings Anticipation Lifts Tech, Bond Yields Retreat

Global Stocks Climb as Investors Position Ahead of Nvidia's Big Report

Global equity markets edged higher on Tuesday, August 25, 2026, as investors positioned themselves ahead of a highly anticipated earnings release from AI chip giant Nvidia (NVDA), while U.S. Treasury yields declined for a second consecutive session and oil prices slid to a one-week low amid geopolitical uncertainty surrounding Iran.

Wall Street Indexes Post Modest Gains

The major U.S. benchmarks finished the session in positive territory, though gains were measured. The Dow Jones Industrial Average added 160.24 points, or 0.30%, closing at 53,577.40. The S&P 500 climbed 24.42 points, or 0.32%, to settle at 7,677.28, while the Nasdaq Composite outperformed, rising 171.11 points, or 0.66%, to close at 26,151.30.

The technology sector led the advance, partially recovering from losses suffered earlier in the week. Market participants widely attributed the sector's strength to growing anticipation around Nvidia's second-quarter results, scheduled for release after Wednesday's closing bell.

"Technology is stronger today after the recent weakness," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder. "Nvidia has been weak and its price-to-earnings valuation has been down. There are buyers of Nvidia here looking for a strong earnings report. Nvidia is helping to pull up the rest of the tech market."

Bond Yields Pull Back for Second Straight Day

U.S. Treasury yields retreated broadly, with the benchmark 10-year note yield dropping 7.92 basis points to 4.625%, compared with 4.704% at Monday's close. The 30-year bond yield fell 6.9 basis points to 5.162%, while the rate-sensitive 2-year note shed 5.98 basis points to reach 4.176%.

Analysts note that the back-to-back yield declines follow Treasury Secretary Scott Bessent's decision last week to expand Treasury buyback operations — a move designed to ease upward pressure on longer-duration borrowing costs. Ghriskey described the yield movement as "moving in the opposite way they have been moving, which is positive for the stock market," while cautioning that the shift remains modest.

Oil Slides Despite Iran Sanctions Threat

Energy markets moved in a different direction. U.S. crude oil futures settled down 3.12%, or $2.65, at $82.36 per barrel, while Brent crude fell 3.89%, or $3.59, to $88.58 per barrel — both touching their lowest levels in about a week.

The decline came despite escalating geopolitical rhetoric. On Monday, Secretary Bessent warned that countries maintaining financial relationships with Iran could face secondary sanctions as part of what officials called "economic D-Day." However, traders appeared to interpret the threat as economic leverage rather than a precursor to military conflict, which historically poses a more direct risk to physical oil supply. The market's muted reaction to the sanctions threat suggests participants are pricing in a diplomatic rather than kinetic escalation.

Global Markets Follow U.S. Lead

The moves were broadly reflected across international markets. MSCI's all-country world index gained 4.77 points, or 0.42%, to close at 1,150.00. In Europe, the pan-European STOXX 600 index ended the session up 0.35%. Across Asia-Pacific, MSCI's broadest regional index outside Japan rose 0.56% to 1,642.24, while Japan's Nikkei 225 advanced 328.34 points, or 0.50%, to 65,856.43.

Dollar Holds Steady; Bitcoin Revisits Key Level

In currency markets, the U.S. dollar index dipped just 0.1% to 98.87 as investors weighed the Iran sanctions developments against Treasury yield dynamics. The euro edged up 0.13% to $1.1677, while the dollar firmed a marginal 0.03% against the Japanese yen to 159.13.

Bitcoin briefly crossed above $80,000 for the first time since mid-May before retreating slightly. The cryptocurrency finished the session essentially flat, down 0.04% at $78,893.30.

Gold Holds Near Multi-Month Highs

Gold prices remained elevated after briefly scaling a more than three-month high earlier in the session, though the rally lost momentum near a key psychological resistance level. Spot gold settled up 0.31% at $4,665.86 per ounce, while U.S. gold futures slipped 0.23% to $4,630.00.

Investors appear to be holding back from making larger directional bets in gold ahead of the Federal Reserve's preferred inflation measure — the Personal Consumption Expenditures (PCE) index — due for release on Wednesday.

What to Watch

All eyes now turn to two critical data points arriving Wednesday: Nvidia's second-quarter earnings report and the PCE inflation reading. Nvidia's results carry outsized significance, given the company's role as a bellwether for AI infrastructure spending globally. Meanwhile, the PCE data could reshape expectations around the Federal Reserve's rate path for the remainder of 2026, potentially moving both bond and equity markets in a meaningful way.