U.S. Stocks Climb as Investors Anticipate Nvidia Earnings

Wall Street experienced a positive turn on Wednesday as stocks rebounded from recent losses. Investors were positioning themselves ahead of the highly anticipated quarterly earnings report from Nvidia and key employment data that had been delayed due to the recent government shutdown. All three major U.S. stock indexes recorded gains, with technology shares driving the Nasdaq Composite to the forefront of the rally.

The Dow Jones Industrial Average increased by 31.65 points, or 0.07 percent, closing at 46,124.28. The S&P 500 rose by 48.03 points, or 0.73 percent, to reach 6,665.84, while the Nasdaq Composite surged by 269.87 points, or 1.22 percent, finishing at 22,706.45. In addition to the stock gains, gold prices rose as investors sought safe-haven assets, whereas crude oil prices fell.

As a key player in the artificial intelligence sector, Nvidia’s upcoming results are particularly significant. The company has been central to much of the stock market’s recent upward momentum. Investors are keenly focused on its performance as they evaluate the sustainability of the AI boom and concerns regarding inflated valuations. Jay Hatfield, CEO of InfraCap in New York, commented, “Investing is all about fear and greed, and those fears that AI is in a bubble were running rampant. Nvidia is critical to answer the question, ‘Are we in a bubble or not?’ There’s some optimism, as there should be, going into it.”

The recently concluded U.S. government shutdown resulted in a backlog of important economic data. The Labor Department’s September employment report is set for release on Thursday, with expectations that it could influence the Federal Reserve’s interest rate decisions at the conclusion of next month’s monetary policy meeting. Additionally, minutes from the Fed’s October meeting, scheduled for release later today, may provide insights into the central bank’s deliberations regarding elevated inflation and a cooling labor market.

European markets also showed modest gains, yet remained near one-month lows ahead of Nvidia’s earnings report. The MSCI global stocks gauge increased by 3.89 points, or 0.40 percent, to 979.90. The pan-European STOXX 600 index rose by 0.35 percent, while the FTSEurofirst 300 index saw an uptick of 6.95 points, or 0.31 percent. In contrast, emerging market stocks dipped, falling by 1.04 points, or 0.08 percent, to 1,360.71.

U.S. Treasury yields climbed as investors absorbed the delayed economic data and anticipated the Fed’s meeting minutes. The yield on benchmark 10-year notes rose by 0.4 basis points to 4.125 percent. Meanwhile, the yield on 30-year bonds increased by 0.8 basis points to 4.7497 percent. The 2-year note yield, which typically reflects interest rate expectations for the Fed, decreased by 0.4 basis points to 3.577 percent.

The U.S. dollar strengthened slightly, while the Japanese yen fell to a 10-month low. The dollar index, which measures the currency against a basket of others, rose by 0.43 percent to 100.02. The euro also weakened, trading down 0.32 percent at $1.1542, while the dollar gained 0.73 percent against the yen, reaching 156.62.

In the cryptocurrency market, Bitcoin experienced a decline of 2.24 percent, falling to $90,390.78. Ethereum also dropped by 3.52 percent, now priced at $2,987.69.

Concerns over oversupply, combined with a U.S. proposal aimed at resolving the war in Ukraine, led to a decrease in crude oil prices. U.S. crude fell by 2.3 percent to $59.34 per barrel, while Brent crude decreased by 2.16 percent to $63.49 per barrel. Meanwhile, gold prices advanced, reflecting investors’ interest in safe-haven assets ahead of the upcoming employment data and Federal Reserve minutes. Spot gold rose by 0.94 percent to $4,106.02 per ounce, while U.S. gold futures increased by 1.51 percent, reaching $4,122.70 per ounce.