Live Nasdaq Composite Update: Market Reacts to Nvidia Earnings
The Nasdaq Composite and other major U.S. stock indexes reversed earlier gains to close in the red, with the Nasdaq down 0.68% and the S&P 500 falling by 0.46%. The Dow Jones Industrial Average gave back a 600-point lead. Nvidia's stock fell 1.5% during the trading session despite later gains post-earnings.
Nvidia's Strong Q3 Earnings Beat Expectations
Nvidia reported third-quarter revenue of $57 billion, up 62% year-over-year, surpassing the $54.9 billion that analysts had projected. Profits rose 65% from the previous year to $31.9 billion. The company also issued a stronger-than-expected sales forecast for Q4, anticipating around $65 billion in revenue.
“Well sales off the, and GPUs are sold out,” said Nvidia CEO Jensen Huang, emphasizing that concerns about an AI bubble are overblown.
The company’s AI data center segment generated $51.2 billion in revenue, exceeding expectations, while gaming revenue was slightly below forecasts at $4.3 billion. Nvidia's advanced "Blackwell Ultra" architecture remains in strong demand across customer segments.
Market Implications and Analyst Views
The strong performance of Nvidia shares in after-hours trading helped lift futures for the S&P 500 and Nasdaq 100. Nvidia remains a central figure in the AI technology surge, comprising about 8% of the S&P 500 index by market value. Its earnings relieved some investor anxiety about an overheating AI market.
Wells Fargo economists maintain that a 25-basis-point rate cut is likely in December due to signs of easing inflation and a softening labor market. Morgan Stanley economists present a different view, suggesting robust payroll data reduces the likelihood of a year-end cut, but anticipate three cuts in early 2026 instead.
“Blackwell Ultra is now our premier architecture across all customer segments, while our previous Blackwell architecture continues to enjoy robust demand,” noted Nvidia CFO Colette Kress.
Summary
The markets witnessed mixed reactions as strong Nvidia earnings boosted optimism about AI-related growth, but overall stock indices retreated amid broader economic concerns and mixed employment signals.
Author's summary: Nvidia’s earnings beat expectations with robust AI chip sales, easing investor fears about an AI bubble, while broader markets showed caution amid economic uncertainties.