US Stocks Soar After Nvidia Earnings, Jobs Report Exceeds Expectations
U.S. stocks rallied on Thursday, driven by stronger-than-expected earnings from Nvidia and an upbeat September jobs report that renewed investor optimism around potential interest rate cuts.
Key takeaway: Tech led a broad advance as a robust labor report nudged rate-cut odds higher into year-end.
Market Snapshot
The Nasdaq Composite surged 2.2%, leading major indexes higher as enthusiasm for technology shares reignited. The broader S&P 500 rose nearly 1.7%, while the Dow Jones Industrial Average—less populated by tech companies—climbed 1.3%, gaining over 500 points. This advance follows a brief rebound on Wednesday after four consecutive days of market losses.
Nvidia Leads Tech Rebound
Nvidia shares jumped almost 5% early in the day after the semiconductor giant reported quarterly results and issued a robust revenue outlook, citing immense demand for its Blackwell processors. CEO Jensen Huang stated that demand is “off the charts,” helping to calm concerns about a slowdown in AI-related stocks.
September Jobs Report: Fuel for Rate-Cut Hopes
The Bureau of Labor Statistics published the delayed September jobs report, showing the U.S. economy added 119,000 jobs last month—more than double economists’ expectations. However, the unemployment rate ticked up to 4.4% from 4.3%. This report arrives after a historic government shutdown delayed economic data, with the October jobs report canceled and the November update postponed.
After the release, traders increased their bets on a Federal Reserve rate cut at the December meeting, with odds rising to 35% from 28%. Despite differing views among Fed policymakers on the risks posed by slowing labor markets versus persistent inflation, the newly available data offered investors a clearer—if complex—backdrop.
By the numbers
- Nasdaq: +2.2%
- S&P 500: +1.7%
- Dow: +1.3% (500+ points)
- Nvidia: ~+5% early session
- Rate-cut odds (Dec): 35% (from 28%)
Corporate Highlights
Walmart
Walmart reported better-than-expected third quarter results and raised its full-year forecast, though shares were little changed as investors weighed signals about consumer spending ahead of the holidays.
Global Tech Momentum
Technology stocks in Asia followed the positive mood, with major chipmakers like TSMC and SK Hynix benefiting from Nvidia’s performance. Shares in related companies such as AMD and Micron also rose, echoing the recovery in sentiment around the AI and semiconductor sectors.
China Remains a Headwind for Nvidia
Despite the upbeat market news, Nvidia’s business in China remains challenged due to ongoing trade restrictions, with China now contributing just 5% of its quarterly revenue—down considerably from past years. Company executives expressed disappointment but committed to working with both U.S. and Chinese officials.
Labor Market Signals
Recent data indicated that fewer Americans filed for jobless claims than expected, signaling resilience in the labor market. However, layoff announcements from major firms and new state-level warnings suggest that hiring conditions may be tightening beneath the surface.
What to Watch Next
- Upcoming economic releases for confirmation of labor and inflation trends.
- Federal Reserve communications ahead of the December policy meeting.
- Earnings from leading tech and retail names as the holiday season approaches.
- Ongoing developments in U.S.–China tech trade restrictions and export controls.
As investors look ahead, markets will be shaped by the interplay of economic data, Fed policy signals, and the performance of AI and semiconductor leaders amid ongoing global challenges.
