Stock market today: Dow, S&P 500, Nasdaq rally fizzles after Nvidia earnings, jobs report

U.S. equities reversed sharply lower Thursday after an initial pop on Nvidia’s earnings and a stronger-than-expected September jobs report; the Nasdaq fell about 2.1% (after a >3.5% intraday reversal), the S&P 500 lost 1.5% and the Dow dropped 380 points (0.8%). Nvidia, despite beating estimates and guiding stronger fourth-quarter revenue with CEO Jensen Huang saying demand for its Blackwell processors is "off the charts," finished down 3.1% after an early 5% surge; the Labor Department reported 119,000 payrolls added in September vs. 51,000 expected and a rise in the unemployment rate to 4.4%, prompting options markets to price roughly 38% odds of a December Fed rate cut and echoing Fed minutes that showed policymakers hold "strongly differing views" on inflation versus a cooling labor market. The sell-off extended into crypto (Bitcoin under $87,000) even as Walmart jumped nearly 7% after beating third-quarter estimates and raising full-year guidance, underscoring a market still navigating mixed demand signals and policy uncertainty.

Analysis

U.S. equities staged an abrupt midday reversal Thursday after an initial rally, with the Nasdaq Composite falling about 2.1% from Wednesday's close (a more than 3.5% intraday reversal), the S&P 500 down 1.5%, and the Dow off 380 points (0.8%) by the close; crypto weakness coincided, with bitcoin trading below $87,000 near its lowest levels since April. The sell-off followed a mixed set of catalysts: Nvidia reported an earnings beat and stronger-than-expected Q4 revenue guidance with CEO Jensen Huang saying demand for Blackwell processors is "off the charts," yet NVDA finished down 3.1% after an early 5% surge, while Walmart beat Q3 estimates, raised full-year guidance and saw its shares jump nearly 7%. Labor-market data were stronger on payrolls but mixed on slack: September added 119,000 jobs versus 51,000 expected while the unemployment rate rose to 4.4% from 4.3%; options market pricing implied roughly 38% odds of a December Fed cut and Fed minutes showed policymakers hold "strongly differing views." The juxtaposition of robust company-level results (WMT), upbeat AI demand signals (NVDA guidance), a confusing labor read, and elevated volatility implies a near-term trading environment driven by headlines, policy signal sensitivity and rotation between growth and defensive/consumer names.

Key Decisions for Investors

• Trim short-term exposure to high-beta AI and growth names or hedge existing NVDA positions with options given the stock's post-earnings volatility despite positive guidance
• Consider adding or holding selective consumer-resilient names like WMT on its strong Q3 beat and raised guidance, but size positions conservatively given policy uncertainty
• Monitor incoming labor-market prints and Fed communications closely and adjust duration and rate-sensitive exposures as the market re-prices odds of a December rate cut
• Limit crypto exposure and enforce disciplined stop-losses or position limits after bitcoin moved below $87,000, reflecting heightened correlation with equity risk-off episodes