NVDA guides $91B Q2 as semis surge, Warsh sworn Fed chair

The S&P 500 finished higher on the back of Nvidia's blowout earnings and record forward guidanceCompany-issued forecasts of future financial performance., with the broader market absorbing Warsh's ascent to the Fed chair role alongside geopolitical tensions in the Strait of Hormuz that have kept oil and long-dated yields elevated. Nvidia's Q1 revenue of $81.6B crushed consensus and its data-center segment posted $75.2B, up 92% year-over-year, while the $91B Q2 guide assumes zero contribution from mainland China yet still towers over Street estimates. The company authorized an $80B buybackA company repurchasing its own shares from the open market., signaling management confidence in sustained free-cash-flow generation despite export controls. The semiconductor narrative dominated, with AMD surging 8% on the print and ARM up 15% as the hyperscaler capex thesis played out across infrastructure suppliers.

The Tech & AI sector led, with Broadcom, AMD, and Arm Holdings among the top performers. Nvidia and the four largest mega-cap peers now account for over 40% of S&P 500 year-to-date returns, deepening concentration risk for passive holders. The broader market narrowed gains as the session wore on; bond yields climbed on Warsh's pro-hawkish reputation and the ECB's signaled June rate hike, with long-dated treasuries hitting levels last seen in nearly two decades. The dollar stalled on tentative optimism around US-Iran peace negotiations, supporting risk sentiment late in the session. Energy was mixed, with oil holding gains on Hormuz closure fears but offset by higher rates and a steadier greenback.

Individual winners in the mega-cap space included Zoom, which surged on a raised full-year revenue and adjusted-earnings forecast, prompting upgrades from KeyBanc and higher price targets from RBC and Baird. Outside tech, KB Home opened the Cloudbreak Ridge community in Las Vegas with homes priced from the low $800Ks, signaling continued residential demand despite macro headwinds. Lantheus Holdings drew bidder interest from Curium at roughly $7B valuation, anchoring healthcare M&A narrative. Cross-asset moves included a record $3B private-placement bond sale by Danaher and muni issuance near $35B year-to-date, with credit conditions described as attractive entry points by fixed-income strategists despite the higher-for-longer rate backdrop.

The dollar index finished near flat on the week after initial risk-off moves in early trade triggered by Hormuz tensions and Warsh's $100M crypto holdings disclosure. The 10-year yield climbed toward 4.7% as long-dated bonds sold off, with strategists citing the synchronized global tightening cycle anchored by the ECB and Warsh's inflationThe rate at which prices rise across an economy.-fighting credibility. Oil (WTI) held above $105 on supply-chain risks in the Persian Gulf, though Rapidan Energy warned a sustained closure through August could rival 2008 recession severity. Gold softened as real yields rose, while Bitcoin moved within narrow confines despite approval from the SEC for Nasdaq Bitcoin Index Options, signaling institutional infrastructure buildup in digital assets.

After-hours earnings reactions were sparse given the late-session close, though Zoom's guidanceCompany-issued forecasts of future financial performance. beat drove extended-hours strength. Nvidia's $80B buybackA company repurchasing its own shares from the open market. authorization remains effective through 2030, providing a floor under share repurchases as guidance cycles unfold. The combination of Warsh's hawkish debut, higher oil prices, and AI capex validation created a bifurcated market: mega-cap tech and infrastructure suppliers rallied, while interest-rate sensitivity stocks and dividend-heavy pockets lagged. SpaceX's June 12 IPOInitial Public Offering - a company's first public sale of stock. filing, which disclosed 18,712 Bitcoin holdings worth $1.4B, underscores the crypto-treasury trend that has attracted institutional capital alongside the Bitcoin options approval.

Tomorrow will focus on Warsh's first policy signals and any developments on the Iran peace track. Investors will parse whether the Fed chair's hawkish rhetoric translates to a June hold or whether oil prices and inflationThe rate at which prices rise across an economy. surprises force an earlier tightening cycle. Hormuz closure risks remain on the tape, with geopolitical updates potentially driving oil volatility through the open.