Home / Business and Economy / Nvidia Earnings Spark AI Rally Revival
Nvidia Earnings Spark AI Rally Revival
20 Nov
Summary
- Nvidia's strong earnings beat and outlook boosted AI stocks.
- Futures rose as Nvidia's report eased fears of an AI bubble.
- Fed minutes show 'strongly differing views' on economic risks.
US stock futures climbed as Wall Street reacted positively to Nvidia's latest earnings report, a development that helped to assuage fears of an AI market bubble. Futures for the Nasdaq and S&P 500 led the gains, indicating renewed investor confidence in technology-driven sectors.
Nvidia's shares experienced a significant surge in after-hours trading following an earnings beat and a stronger-than-anticipated revenue forecast for the fourth quarter. CEO Jensen Huang's comments on "off the charts" demand for Blackwell processors helped to ease concerns that a recent cooldown in AI-linked stocks signaled a more profound, long-term slowdown.
This positive market reaction occurred alongside a modest rebound during the regular trading session, which saw the S&P 500 and Dow Jones Industrial Average end a four-day losing streak. However, major indexes remained down for the week, reflecting a broader pullback in growth stocks. Separately, minutes from the Federal Reserve's October meeting indicated substantial divisions among policymakers regarding whether cooling labor conditions or persistent inflation posed the greater economic risk, adding to market uncertainty.
