Nvidia shares and stock-index futures rose after-hours following the tech giant’s latest earnings report, which beat expectations.
The chip maker reported record revenue and a 65% jump in profit, soothing investor jitters over the artificial-intelligence boom. Nvidia also increased its current-quarter guidance, sending shares 5% higher in after-hours trading.
S&P 500 futures added 0.9%, while contracts tied to the Nasdaq 100 index jumped 1.4%. Other chip stocks and large-tech peers such as Microsoft and Amazon also gained ground.
Nvidia’s results look to be serving as an antidote to growing concerns about lofty valuations of AI-related stocks. Traders, many concerned about an AI bubble, had been positioning for a roughly 7% swing in Nvidia’s share price after earnings and through Friday, according to Cboe Global Markets data.
Before the market closed, the AI chip maker was among the big tech stocks gaining ground, with shares up 2.8%. Google parent Alphabet jumped 3% to close at a record. All three major stock indexes rose on the day, led by the Nasdaq composite, which advanced 0.6%. The S&P 500 and Dow industrials broke four-session losing streaks.
The Bureau of Labor Statistics said Wednesday that it won’t publish a standalone October jobs report, instead pushing important parts of October’s jobs data to Dec. 16, nearly a week after the Federal Reserve meets. The delay, which stems from the government shutdown, makes a Fed interest-rate cut less likely at that meeting, some investors concluded.
Meanwhile, Lowe’s shares rallied 4% after the retailer’s earnings showed its online business helped offset weakness in the home-improvement sector.
