BAF NEWS

Nvidia’s Earnings Spark Global Tech Rally

Nvidia didn’t just beat, it rewired the mood across continents. Tech shares jumped in Asia after the chipmaker posted bumper results and bullish guidance, sending risk appetite higher from the open. U.S. stocks followed with a sharp rebound as the print eased bubble worries around AI leaders.

Here’s the twist: the rally wasn’t isolated to one timezone. European and Asian markets also advanced as AI-linked names pulled broader indices upward, according to the Financial Times. Meanwhile, global stocks were described as rallying after Nvidia’s results eased valuation concerns, confirming the breadth of the reaction.

Moreover, the company’s forward view added fuel. Nvidia guided revenue sharply higher, reinforcing demand for its AI chips across hyperscalers and enterprises. Therefore, investors treated the report as validation rather than a peak.

Nvidia’s Valuation Hits New Highs

Investors kept one eye on the ticker and one on the crown. Nvidia’s market value remained above $3 trillion, according to available reports, reinforcing its status atop the market’s leaderboard. And after-hours trading told the same story, with shares jumping over 5% immediately after results crossed the wire.

But the symbolism mattered just as much. The company was described as the world’s most valuable, and the print further steadied nerves about AI froth. Consequently, the valuation narrative shifted from “too far, too fast” to “still underpinned by demand.”

Broader Market Gains in Asia, Europe, and the U.S.

The rally wasn’t just Nvidia’s halo, it became a market-wide sprint. Early in New York, the S&P 500 rose about 1.6% while the Nasdaq 100 gained roughly 1.9% as mega-cap tech followed Nvidia higher. Later, Wall Street’s gains broadened, with the S&P 500 up about 1.9%, the Dow higher by roughly 712 points, and the Nasdaq up about 2.5%, according to AP.

Meanwhile, Europe caught the updraft. In London, the FTSE 100 climbed about 0.5% as investors cheered Nvidia’s outlook and rotated into winners of the AI supply chain. And across Asia, tech-heavy markets from Japan to Taiwan and South Korea posted robust gains, helped by Nvidia’s upbeat forecast.

Still, not every corner rallied with equal force. But the dominant action was clear: AI-linked leadership pulled benchmarks higher across regions, as the Financial Times also noted. Therefore, breadth and sentiment improved together.

Renewed Hopes for Federal Reserve Rate Cuts

Markets didn’t just celebrate earnings, they repriced policy risk. Hopes for more Federal Reserve rate cuts flickered back to life during the rally, with traders eyeing room for additional easing if growth cools further. You might be surprised that a sitting governor openly backed a December move.

Here’s the twist: Fed Governor Christopher Waller said he would support a cut at the December 10 vote, highlighting a willingness to bolster the labor market after two earlier reductions this year. Consequently, stocks got a second tailwind: easier policy odds alongside strong tech earnings.

But rate hopes still hinge on incoming data. The latest jobs snapshot showed only 119,000 jobs added in September, with unemployment at 4.4%, a mix that can justify caution at the Fed, and that nudged yields lower too. Therefore, macro and micro forces aligned for risk assets, at least for a day.

Bond Yields Dip Alongside Equity Surge

Unlikely pairings defined the session: stocks ripped while yields slipped. Bond prices rose as the 10-year Treasury yield hovered near 4.11%, a modest dip that underscored the shift in rate expectations. Moreover, market reaction included broader declines in Treasury yields, consistent with a relief bid across duration.

And that matters for equity math. Lower yields support higher multiples, especially for long-duration tech names. Consequently, the Nvidia-led rally fed a virtuous loop across growth stocks and government bonds, at least for now.

What no one is mentioning: the next test comes fast. If earnings momentum holds while labor data stays soft, the policy door stays open. Yet a hot data surprise could flip this script quickly, and throttle the rally’s next act.