US stocks traded higher on Thursday after Nvidia’s solid earnings reignited confidence in the AI trade and newly released jobs data pointed to a sturdy economy, helping renew bets on Federal Reserve rate cuts.
The Nasdaq Composite led the way, rising about 0.5% after jumping more than 2% earlier in the session. The S&P 500 added nearly 0.4% after an early rally of more than 1.8%, while the Dow Jones Industrial Average — less exposed to fast-moving tech names — climbed roughly 0.3% as the market’s early surge moderated through midday trading.
Market Movers:
- Nvidia (NVDA) +0.4%: Nvidia surged approximately 5% after delivering an earnings beat and a stronger-than-expected revenue outlook, signaling that AI demand remains intense. CEO Jensen Huang said demand for Blackwell processors is “off the charts,” easing fears of a longer AI cooldown.
- Walmart (WMT) +6.6%: Walmart jumped after raising its full-year forecast and topping expectations on both profit and sales. Its upbeat outlook boosted confidence in consumer strength heading into the holiday season, a key indicator for the broader economy.
- Broadcom (AVGO) +4%: Broadcom rallied after Nvidia’s report boosted optimism for data-center and cloud-AI demand. Investors rotated into semiconductor names with strong exposure to inference and networking, key growth areas tied to AI adoption.
- AMD (AMD) +4%: AMD climbed alongside other chipmakers amid renewed enthusiasm for high-performance compute spending. Investor sentiment improved on expectations that competition with Nvidia will expand the overall market size rather than hinder sales.
- CoreWeave (CRWV) +7%: CoreWeave jumped after traders bet that rising demand for Nvidia GPUs will boost cloud capacity contracts. The cloud services provider, which rents Nvidia chips, is seen as a direct beneficiary of the industry’s accelerating compute buildout.
- Bitcoin (BTC-USD) ~flat near $90,500: Bitcoin steadied after dropping below $90,000 earlier in the week, its lowest level since April. Rising rate-cut expectations helped stabilize crypto sentiment, even as volatility remains elevated.
Jobs Report Renews Rate-Cut Bets
The first major jobs release since the historic US government shutdown surprised markets on Thursday. The US economy added 119,000 jobs in September — more than double expectations — even as unemployment ticked up to 4.4%. The mixed reading boosted optimism that the labor market is cooling without collapsing, giving the Fed more flexibility to ease policy.
Rate-cut odds for the December meeting climbed to around 42% after the report, up sharply from 28% earlier in the morning. Still, traders remain far less certain than a month ago, when the market assumed near-certainty of a cut. Minutes from the Fed’s October meeting revealed an internal divide over whether stubborn inflation or weakening employment poses a greater threat. With data disruptions from the shutdown muddying the picture, investors now view the labor market as a key swing factor for monetary policy heading into year-end.
Big Tech and Chip Stocks Ride Nvidia’s Momentum
Nvidia’s results set off a broader rally across the AI supply chain. Big Tech names, including Alphabet and Meta, gained, while Tesla jumped nearly 6% as traders embraced its AI-driven ambitions in robotics and autonomous vehicles. Chipmakers such as AMD, TSMC, and Arm also rallied, boosted by the view that the AI buildout remains early in its growth curve.
Cloud-infrastructure provider CoreWeave, a key Nvidia partner, soared on expectations that hyperscaler demand will stay elevated. The market’s reaction signaled that fears of an AI bubble may be easing — at least for now — as investors embrace evidence of real, sustained revenue growth tied to GPU demand.
Looking Ahead
Markets now face two catalysts that could define the remainder of the year: next-generation AI production cycles and the Federal Reserve’s December decision. Nvidia’s guidance reinforced expectations that data-center investment will keep accelerating into 2026, while Thursday’s jobs report revived the possibility of a rate cut before year-end.
If AI momentum proves durable and labor data continues to cool without cracking, stocks could regain their footing after a volatile fall. But uncertainty remains high, and investors are watching whether Wall Street’s biggest drivers — tech spending and rate policy — can stay aligned long enough to sustain the rally.