AI chip demand “off the charts,” lifting Nasdaq futures and easing bubble fears—at least for now
MARKET INSIDER – US stock futures surged Wednesday night after Nvidia’s blockbuster earnings reignited the AI trade and helped snap Wall Street out of a four-day slump. Nasdaq futures jumped 1.7%, S&P 500 futures rose 1.2%, and Dow futures—less exposed to tech—added 0.5%, signaling renewed risk appetite heading into a pivotal economic data release.
The catalyst was unmistakable. Nvidia soared more than 5% in after-hours trading after delivering a clean earnings beat and issuing a bullish fourth-quarter revenue outlook. CEO Jensen Huang said demand for the company’s Blackwell processors is “off the charts,” with cloud GPUs already sold out—reassuring investors worried that the recent cool-off in AI stocks signaled something more ominous. For now, the fears of an AI bubble losing steam appear temporarily contained.
The strong reaction extended a modest rebound earlier in the day, when both the S&P 500 and Dow finally broke their losing streak. But major indexes remain negative for the week, underscoring ongoing volatility as investors reassess growth stock valuations.
Macro uncertainty continues to shape the backdrop. Minutes from the Federal Reserve’s October meeting revealed sharp divisions among policymakers over whether weakening labor data or persistent inflation poses the greater threat. Several officials signaled there may be no additional cuts this year, leaving markets guessing ahead of the December meeting.
Next up is Thursday’s delayed September nonfarm payrolls report—pushed back due to the government shutdown—a release that could redefine expectations for Fed policy into year-end. Walmart’s earnings, also due before the open, will offer another read on consumer strength as the holiday season approaches.
For now, Nvidia’s Q3 beat has bought the AI trade more time. Whether the rally sticks will depend on the next 48 hours of data, when investors will learn whether the macro story can match the momentum of Big Tech’s most important earnings engine.
