Stock Futures Rally After Nvidia Smashes Earnings, With Jobs Data Looming

U.S. stock futures moved sharply higher Wednesday evening, fueled by a blowout earnings report from Nvidia that reignited investor enthusiasm for the AI trade and temporarily eased concerns over a tech bubble.

Nasdaq futures led the gains, climbing 1.9%, while S&P 500 futures advanced 1.3%. Dow futures, which include fewer technology names, rose a more modest 0.6%.

The rally was triggered by Nvidia, which surged more than 5% in after-hours trading after the chip giant topped earnings estimates and delivered a stronger-than-expected revenue forecast for the current quarter. CEO Jensen Huang declared demand for the company’s Blackwell processors “off the charts,” helping calm fears that the recent pullback in AI-related stocks signaled a lasting slowdown.

The upbeat after-hours action followed a modest recovery during Wednesday’s regular session, which saw the S&P 500 and Dow snap a four-day losing streak. Despite the rebound, major averages remain lower for the week amid a broader retreat in growth stocks.

Meanwhile, minutes from the Federal Reserve’s October meeting revealed “strongly differing views” among policymakers over whether cooling labor conditions or persistent inflation poses the bigger economic threat. The division has clouded the outlook for the central bank’s December decision, with several officials signaling no further interest rate cuts this year.

Investors now turn to Thursday’s delayed September nonfarm payrolls report for a fresh read on the labor market. Walmart is also set to report earnings Thursday morning, offering a key health check on big-box retailers ahead of the critical holiday shopping season.