Vanguard All-World ETF Caught Between Sticky Inflation and Tech-Sector Jitters Ahead of Nvidia’s Results

Vanguard All-World ETF slips 1% from 52-week high as US CPI surges, bond yields rise, and tech stocks sell off. All eyes on Nvidia earnings Wednesday.

A promising start to the week gave way to familiar headwinds for global equities, leaving the Vanguard FTSE All-World ETF nursing a small loss on Friday. The fund closed at €159.06, retreating roughly one percent from its recent 52-week high as a cocktail of rising bond yields, stubborn inflation, and a sharp selloff in technology stocks curbed risk appetite. Despite the late-week stumble, the ETF still carries a solid year-to-date gain of nearly nine percent.

Geopolitical détente fades as inflation bites

Early in the week, a historic summit in Beijing between US President Donald Trump and Chinese President Xi Jinping briefly lifted sentiment. The two economic superpowers appeared to stabilize frayed ties, with reports that China is eyeing purchases of American crude oil. But the rally proved short-lived. No major breakthrough emerged, and Washington sent mixed signals on AI chip exports—tightening some restrictions while allowing Nvidia to continue selling its H200 chips in China. By Friday, investors were once again focused on macroeconomic realities.

The April US consumer price index delivered an unwelcome surprise, climbing 3.8 percent year-on-year—the sharpest increase in three years. Energy costs led the charge, fueling fears that inflation remains stickier than anticipated. The yield on the ten-year US Treasury note responded by jumping to 4.544 percent, applying immediate pressure to equity valuations.

A new Fed chief walks into a tight spot

Adding to the uncertainty, the US Senate narrowly confirmed Kevin Warsh as the next chairman of the Federal Reserve, replacing Jerome Powell. Warsh takes the helm with inflation running above the central bank’s target for more than five years, exacerbated by tariffs and rising oil prices. While the new chief is seen as open to rate cuts, the latest data makes any quick easing unlikely. Markets are now pricing in a 45 percent probability of a rate hike this year, according to the CME FedWatch tool—up from just one percent a month ago. Every public word from Warsh in the coming days will be scrutinised for clues.

Tech stocks slip, but all eyes are on Nvidia

The technology sector, which accounts for a hefty slice of the All-World ETF’s portfolio, took a hit on Friday. Intel dropped more than six percent, and shares of AMD and Micron also slid. The weakness rippled through the fund’s largest holdings, including Microsoft, Alphabet, and Nvidia itself. Yet the selloff may be a temporary pause rather than a reversal.

All attention now turns to Wednesday evening, when Nvidia reports its quarterly results. Analysts expect revenue to surge roughly 78 percent, making it one of the most consequential earnings releases of the year. As the world’s most valuable company and a dominant force in AI chips, Nvidia’s numbers often set the tone for global semiconductor stocks—and by extension, the broad market. Countries with heavy AI exposure, such as South Korea and Taiwan, have been driving global gains, while more traditional sectors lag behind.

Technical levels to watch

The ETF’s distance from its 52-week high serves as a key marker for traders. A strong Nvidia outlook could propel the fund back towards that level in short order. A disappointment, on the other hand, risks dragging the price down toward its 50-day moving average near €150.16. For now, the broader direction hinges on whether earnings momentum can overcome the headwinds from inflation and a hawkish shift in rate expectations.