U.S. stocks rose on Wednesday, recovering some of the ground lost during the recent selloff.
As investors positioned themselves ahead of Nvidia’s closely watched earnings and key employment data delayed by the longest government shutdown in U.S. history. All three major indexes finished higher, with tech strength putting the Nasdaq in the lead.
Nvidia—widely viewed as the face of the current artificial intelligence boom—reported stronger-than-expected quarterly results after the closing bell and projected fourth-quarter revenue above Wall Street estimates.
“The companies that are Nvidia’s customers are expanding their investment in AI infrastructure, so chip demand looks set to increase,” said Rob Haworth of U.S. Bank Wealth Management. He added that despite concerns of overheating, “It seems early to talk about an AI bubble because the growth has been driven by earnings. We’re still early in this investment cycle.”
Fed Minutes, Data Backlog Weigh on Markets
Minutes from the Federal Reserve’s October meeting showed an unusual split among policymakers. While the Fed cut interest rates, some officials warned the move risked undermining efforts to tame inflation.
Gold pared gains after the release of the minutes, while crude oil prices slid on reports of a U.S. proposal aimed at ending Russia’s war in Ukraine.
The recently concluded government shutdown has created a backlog of economic data. The delayed September jobs report is due Thursday, and the Labor Department said it will also release a combined October–November report, meaning the Fed will have less labour-market information ahead of its December policy meeting.
Wall Street Ends Higher
Dow Jones: +47.03 points (0.10%) to 46,138.77
S&P 500: +24.87 points (0.38%) to 6,642.19
Nasdaq Composite: +131.38 points (0.59%) to 22,564.23
Global Markets Mixed
European markets were subdued, with the STOXX 600 slipping 0.03%. MSCI’s world index edged up 0.07%.
Emerging market equities fell 0.11%, while MSCI’s Asia-Pacific index outside Japan dipped 0.32%. Japan’s Nikkei dropped 0.34%.
Bond Yields, Dollar Firm Ahead of Jobs Data
U.S. Treasury yields rose after officials confirmed that October and November jobs data would not be available before the Fed’s next meeting.
10-year yield: 4.129%
30-year yield: 4.7487%
2-year yield: 3.589%
The dollar strengthened, hitting its highest level against the yen since January.
Dollar Index: +0.6% to 100.20
Euro: $1.1525
Dollar/Yen: ¥157
Commodities
Oversupply concerns and geopolitical news dragged crude lower:
U.S. crude: –2.14% to $59.44
Brent: –2.13% to $63.51
Gold rose as investors sought safety ahead of delayed data, though gains eased after the Fed minutes:
Spot gold: +0.13% to $4,073.01/oz
U.S. gold futures: +0.26% to $4,072/oz
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