Nvidia's Success Triggered a Rise in the Markets

U.S. stock futures rose in response to Nvidia’s earnings report on Wednesday evening. This development temporarily revived the artificial intelligence trade, easing concerns of an impending bubble.

Futures linked to the technology-heavy Nasdaq gained 1.2%. Futures connected to the S&P 500 rose by 0.9%, while those associated with the less tech-heavy Dow Jones Industrial Average climbed 0.4%.

Nvidia saw more than a 5% increase in after-hours trading following news that the chipmaker reported better-than-expected earnings and provided a strong revenue outlook for the fourth quarter. CEO Jensen Huang stated that demand for the company’s Blackwell processors is "off the charts," alleviating concerns that the recent cooling in AI-related stocks is a long-term slowdown signal.

The positive after-hours reaction followed a slight recovery during the regular session on Wednesday, which saw a bounce after four days of losses for the S&P 500 and Dow. However, key indices continue to remain in negative territory this week due to a broader pullback in growth stocks.

Meanwhile, the minutes from the Federal Reserve’s October meeting indicated that policymakers had "strongly different views" on whether cooling labor conditions and stubborn inflation pose a more significant threat to the economy. This divergence increases uncertainty surrounding the central bank’s decision in December, as some officials stated they would not pursue additional rate cuts this year.

Investors will focus on the delayed September non-farm payroll report due to the federal government shutdown and on Walmart’s report regarding the health check of major retailers ahead of the holiday season, set to be released Thursday morning before the market opens.