U.S. equity futures rallied sharply on Thursday after Nvidia’s (NASDAQ:NVDA) powerful earnings report helped ease investor worries about overstretched valuations in the technology sector. Attention now shifts to upcoming results from Walmart (NYSE:WMT) and the highly anticipated September nonfarm payrolls report.
Nvidia reignites market optimism
Nvidia delivered another blockbuster quarter, offering a major confidence boost to global markets. The chipmaker posted its fastest revenue growth in nearly two years, with sales up 62% year-over-year, and projected fourth-quarter revenue of $65 billion, ±2%, well above analysts’ expectations of $61.66 billion (LSEG).
CEO Jensen Huang rejected claims that the AI boom has inflated a bubble: “There’s been a lot of talk about an AI bubble. From our vantage point, we see something very different,” he said during the call.
Huang stressed that Nvidia’s demand pipeline spans far beyond the Big Tech cloud giants: “We’re in every cloud. The reason why developers love us is because we’re literally everywhere. We’re everywhere from cloud to on-premise to robotic systems, edge devices, PCs, you name it. One architecture. Things just work. It’s incredible.”
He also repeated his earlier estimate that Nvidia has accumulated $500 billion in chip bookings through 2026.
Adding to the positive momentum, Bloomberg reported that the Trump administration is urging Congress to block a proposed measure that would restrict Nvidia’s AI chip exports to China and other embargoed nations.
U.S. futures rise on Nvidia’s strong report
At 03:20 ET, U.S. stock futures moved decisively higher:
- S&P 500 futures: +1.3%
- Nasdaq 100 futures: +1.8%
- Dow futures: +0.6%
All three major indices ended Wednesday higher, finally breaking a four-day sell-off, though they remain on track for a weekly decline.
ING analysts cautioned: “Should the jobs data fail to swing the market towards a Fed cut in December (currently 50% priced), then pressure remains on equity markets.”
Nonfarm payrolls back in the spotlight
Today’s September employment report carries added weight after being delayed by the 43-day U.S. government shutdown, which also forced the cancellation of October’s numbers.
Economists expect:
- +50,000 jobs, more than double August’s 22,000
- Unemployment at 4.3%, a four-year high
Vital Knowledge analysts noted: “In years past a ~50K monthly jobs pace would be a bright green light for the Fed to slash rates, but in the current environment… the central bank won’t be as quick to act.”
Walmart set to report earnings
Walmart, the world’s largest retailer, will release earnings later today—offering insight into how consumers are heading into the critical holiday shopping stretch.
Market expectations:
- Revenue: $177.5 billion (+4.7% YoY)
- EPS: $0.60 (vs. $0.58 last year)
The update follows news that CEO Doug McMillon will retire next year after more than a decade at the helm, a period during which Walmart’s market value has tripled.
Other retail earnings this week:
- Target (NYSE:TGT) cut full-year guidance
- Home Depot (NYSE:HD) warned of a deeper profit drop
- Lowe’s (NYSE:LOW) beat estimates and raised its outlook
Oil prices continue to rise
Crude prices advanced, supported by a larger-than-expected draw of 3.4 million barrels in U.S. inventories last week.
- Brent: +0.6% to $63.86
- WTI: +0.6% to $59.59
Both benchmarks are poised for weekly gains of more than 1% ahead of the November 21 U.S. deadline to cease business with Rosneft and Lukoil.
Oil fell sharply Wednesday after a Reuters report suggested the U.S. had urged Ukraine to consider a U.S.-drafted peace framework to end the war with Russia.