Rise and Shine: Everything you need to know before the ASX opens

Good morning everyone and welcome to Rise and Shine on Thursday, May 29, 2025. Here’s what you should know before the ASX opens today…

The Aussie market looks set to coast quietly into Thursday, with ASX200 futures pointing to a flat start.

Wall Street didn’t offer much of a tailwind overnight, slipping under the weight of fresh chip tensions and renewed pressure from Washington on China’s access to US tech.

Wall Street wobbles as chip war heats up again

It wasn’t a horror show on Wall Street, but the mood turned sour late in the session.

The S&P 500, Nasdaq and Dow all dropped around 0.5–0.6%, after word got out that Washington’s tightening the screws on China’s access to key US chip tech.

This time, the blow landed on software, specifically the design tools that chipmakers need before a single wafer’s made. Cadence and Synopsys, two heavyweights in that space, took a hit.

The US has reportedly told them to stop selling to Chinese clients, part of a broader push to slow Beijing’s ability to build advanced semiconductors.

Even Tesla’s robotaxi buzz couldn’t lift the mood.

But it’s happening, finally. After years of hype, Tesla’s driverless taxi service is set to hit the streets of Austin on June 12.

It will start with just 10 Model Ys in the safest parts of town, and only for a small invite-only group. Public rollout is still TBD.

Nvidia steals the show, again

If this market had a lead actor, it’s Nvidia.

The world’s AI chip overlord came out swinging in its latest earnings, forecasting a massive US$45 billion in revenue for the current quarter, even after wiping off around US$8 billion in expected China sales due to export restrictions.

That’s how hot global demand is for its AI gear.

Its new Blackwell chips, the brains behind next-gen “thinking machines”, are now in full-scale production, and everyone from Big Tech to Middle Eastern governments is lining up for a slice.

Gross margins are climbing back into the 70s, with Nvidia saying it’s on track to hit mid-70% later this year. That’s premium territory in any sector, let alone one battling trade restrictions and supply hiccups.

CEO Jensen Huang dubbed Nvdia’s achievements a “tipping point” for AI infrastructure, while analysts labelled the report “pivotal”.

Nvidia shares jumped 4.5% after hours.

Fed minutes

Over at the Fed Reserve, policymakers are stuck between a burning CPI and a weakening job market.

Minutes from the May meeting show officials bracing for rising inflation and rising unemployment, two things that don’t usually like to hang out together.

The culprit is Trump’s tariff plans.

If they stick, they could jack up prices while slowing the economy, putting the Fed in a pickle: raise rates to cool inflation, or cut them to save jobs?

And finally…

Local investors will get a breather today, with a light agenda led by capital expenditure data at 11:30am, AEST.

A few corporate names will  be reporting. Watch for updates from Select Harvests (ASX:SHV) and Champion Iron (ASX:CIA).

And eyes will also be on the ACCC’s ruling on Elders (ASX:ELD)’ $475 million play for Delta Agribusiness.

It’s not a blockbuster data day, but still worth tuning in. Markets are hypersensitive to small signals right now, and any hint of corporate caution could sway sentiment.

Commodity/forex/crypto market prices

What got you talking

Also in the news…

In Australia, women are poised to inherit approximately 65% of the nearly $5 trillion expected to be transferred in intergenerational wealth by 2034. So, which sectors are positioned to benefit most?

Chile is the second largest producer of lithium after Australia, while companies have snapped up, grown and carried out extensive work in Argentina. So why has Bolivia fallen by the wayside?

As coal prices continue to fall, Queensland — Australia’s top coal producing state — is looking to diversify by increasing its push into other resources, targeting faster project approvals and rapid development.

Trading halts

• Cardiex (ASX:CDX) – cap raise
• Flagship Minerals (ASX:FLG) – cap raise
• Pacgold (ASX:PGO) – cap raise

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

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.