Wall Street futures advanced sharply Wednesday night, driven by a powerful post-earnings rally in Nvidia, which delivered stronger-than-expected third-quarter results and guidance. The performance revived confidence in the artificial-intelligence trade, helping markets break a five-session losing streak despite hawkish signals from the latest Federal Reserve minutes.
By 19:12 ET (00:12 GMT):
- S&P 500 futures gained 1% to 6,730.75
- Nasdaq 100 futures jumped 1.5% to 25,104.75
- Dow futures rose 0.4% to 46,406
The uptick followed a rebound session on Wall Street fueled by dip-buyers positioning ahead of Nvidia’s release. Investors now shift focus to Thursday’s U.S. nonfarm payrolls report, a key indicator for evaluating labor strength and near-term interest-rate direction.
Nvidia Ignites AI Trade
Nvidia shares surged 5.2% in after-hours trading, hitting a 10-day high after the chipmaker posted earnings that exceeded already-elevated expectations. The company reported robust demand for its high-performance AI processors and issued upbeat guidance that reassured investors questioning sector valuations.
On the earnings call, CEO Jensen Huang pushed back against the idea of an AI-driven asset bubble, emphasizing that demand was now expanding beyond cloud giants to broader enterprise customers. He also addressed concerns over “circular” investment structures, noting Nvidia’s stake in OpenAI was geared toward strengthening its technological ecosystem.
The upbeat results sparked gains across the semiconductor and AI supply chain:
- AMD: +4%
- Broadcom: +3%
- Super Micro Computer: +6%
- Amkor Technology: +10%, after Nvidia named it a key partner in U.S. chip-packaging expansion
The strong momentum helped lift battered tech shares, offering a reprieve from the sector’s recent selloff.
Fed Outlook and Payrolls in Focus
U.S. equities closed higher earlier Wednesday, marking the first advance in five sessions. But enthusiasm was tempered by shifting rate-cut expectations. Minutes from the Fed’s October meeting showed policymakers split on the timing of potential policy easing, prompting traders to sharply scale back December cut projections.
The CME FedWatch Tool now shows only a 24% probability of a 25-basis-point cut at the December meeting, down from 42.4% a day earlier.
Mixed retailer earnings added to the uneven mood:
- Target: –2.8% after lowering annual guidance
- Lowe’s: +4% on solid earnings, despite trimming full-year profit outlook
- Walmart reports Thursday
Earlier in the day:
- S&P 500: +0.4% to 6,642.19
- Nasdaq Composite: +0.6% to 22,564.23
- Dow Jones: +0.1% to 46,138.77
Investors now await the long-delayed September payrolls report, expected to offer critical insight into labor-market resilience. With data disruptions from a prolonged government shutdown, the Fed may be heading into December with limited visibility.