Australia

Australian shares are set to open lower, after U.S. indexes fell slid despite Nvidia's strong result.

ASX futures were down 1.1% or 83 points as of 8:00am on Friday, suggesting a lower open.

U.S. stocks ended broadly lower as strong economic data had more investors expecting the Fed to keep rates higher for longer.

DJIA dropped 605 points, or 1.5%, to 39065, the S&P 500 fell 0.7% to 5267 and the Nasdaq lost 0.4% to 16736.

In commodity markets, Brent crude oil was down 0.5% to US$81.48 a barrel, while gold was down 2.1% at US$2,329.27.

In local bond markets, the yield on Australian 2 Year government bonds was flat at 3.99% while the 10 Year yield was down at 4.25%. US Treasury notes were up, with the 2 Year yield at 4.94% and the 10 Year yield at 4.48%.

The Australian dollar was 66.05 US cents, down from its previous close of 66.17. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, was up at 99.70.

Asia

Chinese shares closed lower, dragged by property and energy stocks. The benchmark Shanghai Composite Index fell 1.3% to 3116.39, the Shenzhen Composite Index dropped 1.7% and the ChiNext Price Index lost 1.4%. Sentiment has cooled since Beijing unveiled its property-sector stimulus measures last week. Greenland Holdings and Seazen Holdings led losses, falling 5.4% and 3.8%, respectively. Among energy stocks, Trina Solar shed 4.1% and Jinko Solar dropped 3.4%. Meanwhile, Ecovacs Robotics rose 1.1% and Shenzhen Transsion was up 1.0%.

Hong Kong shares closed lower, weighed by major tech names. The benchmark Hang Seng Index fell 1.7% to 18868.71 and the Hang Seng Tech Index dropped 2.4%. Alibaba slid 5.2% after a media report saying it is considering selling $5 billion in convertible bonds, following JD.com's $1.75 billion offering earlier this week. JD.com ended 4.1% lower. Semiconductor shares fell broadly as well, with SMIC down 3.0%. Xinyi Solar shed 2.7%. Xiaomi and NetEase are due to release results after market close.

Japanese stocks ended higher, led by gains in chip and tech stocks, following Nvidia's strong results. Lasertec climbed 6.3% and SoftBank Group gained 4.3%. The Nikkei Stock Average rose 1.3% to 39103.22. The 10-year Japanese government bond yield stayed flat at 0.995%. Investors are focusing on U.S. economic data and their policy implications.

India shares ended higher, led by tech and bank stocks. HDFC Bank was 2.2% higher and ICICI Bank gained 2.0%. Tech stocks also rose on improved sentiment after Nvidia's strong results, with Infosys adding 1.25% and Wipro 1.0% higher. Decliners included Power Grid Corp. of India, which fell 1.9%, and Sun Pharmaceutical Industries, which dropped 2.9%. The benchmark Sensex rose 1.6% to 75418.04.

Europe

Stocks in the U.K. slipped Thursday, as the FTSE 100 Index declined 0.4% to 8339.23.

Among large companies, National Grid PLC posted the largest decline, dropping 11%, followed by shares of Drax Group PLC, which dropped 8.6%. Shares of Pennon Group PLC dropped 7.1%.

Hargreaves Lansdown PLC was the biggest gainer during the session, surging 14%, and QinetiQ Group PLC surged 13%. AJ Bell PLC rounded out the top three movers on Thursday, as shares surged 11%.

In Europe, shares closed slightly higher, with the STOXX Europe 600 Index adding 0.1% to 521.56, Germany's DAX also up 0.1% to 18,691.32 and France's CAC 40 rose 0.1% to 8,102.33.

North America

U.S. stocks ended broadly lower as strong economic data had more investors expecting the Fed to keep rates higher for longer.

DJIA dropped 605 points, or 1.5%, to 39065, the S&P 500 fell 0.7% to 5267 and the Nasdaq lost 0.4% to 16736.

Weekly jobless claims were lower than expected while the S&P Global Flash U.S. Composite PMI rose to a 25-month high in May, the first time since January that the index hasn't slowed.

Investors had been eagerly awaiting Nvidia's results because its heavy weighting in benchmark indexes such as the S&P 500 gives the chip manufacturer the potential to move the broader market. The company's performance is also seen as a test of the artificial-intelligence frenzy that has powered the stock market for the past year.

Shares of Nvidia jumped 9.3% on Thursday after the company reported record quarterly revenue and profits that beat Wall Street's expectations. But the performance wasn't enough to push the major indexes higher.

Ten out of 11 sectors in the S&P 500 fell on Thursday. Only the information-technology sector, which includes Nvidia, eked out a 0.6% gain.

"Underneath the hood, the market has a really risk-off tone," said Adam Phillips, managing director of investments at EP Wealth Advisors.

In recent months, investors have been recalibrating their expectations on inflation and when the Federal Reserve might cut interest rates. A string of hotter-than-expected inflation reports dashed investors' hopes for as many as six or seven rate cuts this year, but more encouraging data in recent weeks has kept hopes alive for cuts in 2024.

The S&P 500 is up 4.6% in May, and 10% for the year.

On Thursday, however, worries about inflation were rekindled when a business report showed U.S. economic activity picked up pace this month. The S&P Global Flash U.S. Composite PMI -- which measures activity in the manufacturing and services sectors -- rose to 54.4 in May from 51.3 in April, its highest level in more than two years.

The yield on the 10-year U.S. Treasury note -- a benchmark for mortgages and other borrowing costs -- rose to 4.474%, from 4.433% on Wednesday.

"That's taking some of the enthusiasm out of the rest of the market," Todd Jones, chief investment officer of Gratus Capital, said of the move in the Treasury yield.

Among other individual stocks, shares of Boeing dropped 7.6%, weighing on the Dow industrials. The plane maker said it expects to burn through a further $4 billion in the current quarter and be cash-flow negative for the full year.

Comerica's stock lost 5.7% after regulators issued an enforcement action against one of its business units, saying it found "unsafe or unsound practices" related to its risk governance and internal controls.

Live Nation shares declined 7.8% after the Justice Department sued to break up the U.S.'s largest concert promotion and ticketing company.