Wall Street Rises as Strong Nvidia Earnings and U.S. Jobs Data Lift Market Sentiment

Wall Street’s major indexes were set to open higher on Thursday, lifted by Nvidia’s strong earnings and outlook, which helped ease concerns about a potential AI bubble and boosted technology stocks. Investors also weighed fresh U.S. jobs data for September.

Nvidia jumped 5.1% in premarket trading after the world’s most valuable company projected fourth-quarter sales above analysts’ estimates and beat expectations for third-quarter revenue. On an analyst call, CEO Jensen Huang dismissed worries about an AI slowdown, saying, “We’re seeing something very different.”

Tech stocks’ sharp rally earlier this year had begun to fade as investors turned cautious over fears of an AI-driven bubble. Concerns over monetization, cyclical spending in the sector, and corporate debt issuance pushed the Nasdaq well below its October highs and pulled Nvidia more than 12% off its peak.

As of Thursday’s close, the S&P 500 was down nearly 3% for November, while the Nasdaq had fallen about 5%.

Meanwhile, new data showed U.S. job growth picked up in September, even as the unemployment rate rose to 4.4%, signaling continued softness in the labor market.

“The problem is the report is dated, and the next one arrives only after the December Fed meeting,” said Art Hogan, chief market strategist at B. Riley Wealth. “This certainly complicates things for the Fed and doesn’t help clarify the path toward rate cuts.”

Traders continued to bet that the Federal Reserve will hold off on cutting interest rates in December, though expectations eased slightly after the jobs data was released.

The Bureau of Labor Statistics announced Wednesday that it would not publish its October report. Due to the recent government shutdown, household survey data couldn’t be collected, so the agency will combine October’s payroll numbers with November’s report.

The September employment figures came a day after minutes from the Fed’s last policy meeting showed divisions among policymakers over when — or whether — to begin cutting rates. At least five Fed officials were scheduled to speak later in the day.

At 8:49 a.m. ET, Dow e-minis were up 412 points, or 0.89%; S&P 500 e-minis climbed 103.75 points, or 1.56%; and Nasdaq 100 e-minis surged 510.5 points, or 2.06%.

Alongside Nvidia, shares of other chipmakers also advanced: Advanced Micro Devices rose 3.6%, while Broadcom and Marvell Technology posted solid gains.

Most megacap and growth stocks traded higher. Alphabet gained 4%, and Meta rose 2%.

Walmart jumped 4.1% after raising its annual forecast for the second time this year and setting a December date to switch its stock listing from the NYSE to Nasdaq.

In contrast, Palo Alto Networks fell 1.9% after announcing it would acquire cloud-monitoring firm Chronosphere for $3.35 billion.

Additional data showed that new U.S. claims for unemployment benefits declined last week.