Market Highlights: Nvidia, Tesla spearhead sharp tech rebound, and 5 ASX small caps to watch today

The ASX is expected to open higher on Tuesday following gains in New York
Tech stocks rebounded as they prepare earnings reports
Kamala Harris’ win could be an obstacle for gold, says this expert

The ASX200 index is expected to rebound when the market opens on Tuesday, tracking gains in New York. At 8am AEST, the ASX200 futures contract was pointing up by 0.7%.

Overnight, tech stocks ripped higher as investors geared up for the start of earnings announcements from giant tech firms.

The S&P 500 roared back by 1.08%, the blue chips Dow Jones index leapt by 0.32%, and the tech-heavy Nasdaq soared by 1.58%.

Nvidia spearheaded the tech comeback after suffering significant losses last week, up by 4.76% last night.

Chip maker ASML also climbed by 2.5%, while semiconductor manufacturer TSMC saw a rise of over 2%.

Tesla gained 5.15%, and Alphabet rose 2.26% with both companies set to report their quarterly results later today.

According to consensus, four of the “magnificent seven” companies – Nvidia, Amazon, Meta, and Alphabet – are expected to be among the top 5 contributors to this season’s earnings.

Crowdstrike, which plunged by 11% on Friday following the outage incident, extended its slide, down by another 13% as traders assessed the prospects of multiple lawsuits.

Crude oil prices and oil-related stocks mostly fell after Donald Trump pledged to reduce energy costs if he wins the November presidential election.

Cryptocurrencies, meanwhile, will be under the spotlight as Trump is scheduled to address a bitcoin conference in Nashville later this week.

Gold could fall under Kamala Harris

Biden’s decision to step back as the Democratic nominee could be seen as a potential obstacle for gold, according to Chris Weston, Head of Research at Pepperstone.

If you had invested in gold anticipating Republican control leading to increased budget deficits, these positions may now be questioned as we might be looking at a divided Congress again.

The potential rise of Harris and the Democrats into November reduces some reasons for holding gold as a hedge against hawkish foreign policies and massive deficit spending under a Trump/Vance administration.

The impact of Harris’ presidency on economic policies remains uncertain. However, how she presents herself now could sway public opinion and market sentiment.

“Much rides on how presidential Harris sounds when she does address the nation publicly, but she could offer choice, a factor many Americans have detailed they wanted,” said Weston.

“So, a lot of ‘ifs’ but a presidential Harris could get this done for the Dem and reduce the number of reasons to own gold as a hedge against some of the policies a Trump/Vance ticket offers.”

In other markets …

Gold price lifted modestly by 0.1% to US$2,396.40 an ounce.

Oil prices slipped by 0.5%, with Brent crude now trading at US$82.20 a barrel.

The benchmark 10-year US Treasury yield climbed by 1 basis points (bond prices lower) to 4.25%.

The Aussie dollar retreated a further 0.6% to trade at US66.45 cents.

The iron ore price slipped by 1% to US$103.50 a tonne.

Bitcoin meanwhile was down by 0.5% in the last 24 hours to US$67680, while Ethereum tumbled by over 2% to US$3,447.

5 ASX small caps to watch today

iTech Minerals (ASX:ITM)
ITM announced significant findings from Reynolds Range in the Northern Territory. Rock chip samples have revealed high concentrations, including 18.2% copper (Cu), 1,490 grams per tonne silver (Ag), and 5.3% lead (Pb) in various assays. These results complement earlier reports of up to 182 grams per tonne gold (Au). Extensive copper mineralisation has been identified at the Scimitar and Reward prospects, accompanied by gold, silver, and lead. A substantial electromagnetic (EM) target, spanning 1.7 kilometers at Scimitar, along with a multi-element soil anomaly and visible mineralisation, highlights a priority area for future drilling.

Plenti Group (ASX:PLT)
Plenti has provided an update on its performance for Q1 ended June 30. Highlights include a loan portfolio growth to $2.2 billion, a successful launch of a car loan program with NAB, and securing renewable energy funding. The company also completed a significant automotive transaction and reported increased quarterly revenue of $60.9 million. Additionally, Plenti announced the appointment of Adam Bennett as the new CEO, effective after his tenure at NSW Land Registry Services.

Quickstep (ASX:QHL)
Quickstep has provided a business update for July 2024. The company has successfully completed restructuring activities announced in June. Agreements on pricing and volume with Lockheed Martin for the C-130 program have been finalised. QHL has also established a production plan for the Northrop Grumman F-35 program. The company achieved record drone production at its Geelong facility in Q4 FY24. Unaudited full-year group revenue reached $99 million, surpassing the previously guided range of $94 million to $96 million from April. The services business unit saw a 94% year-on-year revenue growth, exceeding $10 million.

SRG Global (ASX:SRG)
SRG has provided an update on its FY24 performance. The company anticipates FY24 EBITDA to reach approximately $98 million to $99 million. SRG achieved a net cash position of $17.8 million in FY24, a significant improvement from a net debt position of $17.0 million in FY23. The company continues to perform well with robust margins and has a record Work in Hand of $2 billion, alongside an Opportunity Pipeline of $6.5 billion.

Zenith Minerals (ASX:ZNC)
Zenith has appointed Andrew Smith as its new CEO/Managing Director, effective from July 31. Smith brings extensive mining industry experience from his leadership at British Lithium, where he successfully developed innovative technology for lithium extraction and oversaw a major acquisition by IMERYS. His career spans 15 years across global mining operations, including significant roles with British Lithium, Cominco Resources, European Metals, Equatorial Resources, and Rio Tinto.

At Stockhead we tell it like it is. While iTech Minerals is a Stockhead advertiser, it did not sponsor this article.