Markets Edge Higher as Eyes Turn to Nvidia’s AI Signal

Stocks ended modestly higher Wednesday, snapping a four-day slide for the S&P 500 and Dow as Nvidia's post-close earnings loomed large over investor sentiment. Despite lingering concerns over AI valuations and Fed policy uncertainty, Nvidia’s strong results and upbeat guidance helped support after-hours gains, offering a potential turning point for tech sentiment. Broader markets saw cautious optimism, with the Nasdaq leading gains, while bond yields ticked up and Bitcoin sank below $90,000.

Key Headlines & Market Movers:

• Nvidia Delivers Blowout Quarter, Calms AI Bubble Fears: Nvidia topped both top- and bottom-line expectations for Q3, with 62% revenue growth and standout data center sales. More importantly, its Q4 revenue guidance of $65B exceeded already high expectations, reinforcing confidence in sustained AI infrastructure demand. CEO Jensen Huang emphasized that GPU supply remains tight and demand robust, noting “Blackwell sales are off the charts.” Post-market, NVDA shares climbed nearly 5%, signaling investor relief that AI spending isn’t collapsing. The beat-and-raise performance sets a reassuring tone for AI-linked equities.

Fed Minutes Lean Hawkish, But Market Reaction Muted: Minutes from the Fed’s October meeting showed “many” officials favor holding rates steady through year-end. However, policymakers face high uncertainty amid lost jobs data and unclear tariff impacts. Despite the hawkish tilt, markets took the minutes in stride, likely due to delayed economic data clouding the macro picture. Treasury yields inched higher, with the 10-year settling at 4.13%.

• Tech Sector Mixed, Google Rallies on AI News: Alphabet jumped 3% after unveiling its Gemini 3 AI model, hitting a fresh all-time intraday high and supporting sentiment in the broader AI space. Microsoft and Amazon were more muted, continuing to digest recent analyst downgrades and AI spending commitments. Still, Nvidia’s strong quarter may re-anchor confidence in tech fundamentals and ease some fears of overhype.

Retail Divergence Highlights Consumer Shifts: Lowe’s beat on profit and raised guidance, pushing shares up 4% and outperforming rival Home Depot’s recent miss. Meanwhile, Target disappointed on sales and trimmed its outlook, reinforcing concerns around discretionary spending. TJX saw modest gains after beating estimates and lifting its forecast, as value-focused shoppers show resilience. Overall, retailers are sending mixed signals on consumer health ahead of the holiday season.

S&P 500 Sector Performance

Looking Ahead

With Nvidia reaffirming the strength of the AI trend, markets may find renewed footing if investor confidence returns to tech. The delayed September jobs report on Thursday could bring fresh macro clarity, while Fed messaging and data gaps will keep uncertainty elevated. AI names now have breathing room, but follow-through buying will hinge on broader risk appetite and whether economic signals can support renewed bullish momentum.

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