Stock futures higher as Nvidia's strong forecast reignites the AI trade: Live updates

Stock futures rose Wednesday after Nvidia topped earnings and revenue estimates and issued stronger-than-expected fourth-quarter sales guidance — shares jumped nearly 5% in after-hours trading and CEO Jensen Huang said demand for its Blackwell chips was "off the charts" — lifting S&P futures 0.8%, Nasdaq 100 futures 1.4% and Dow futures roughly 110 points (≈0.3%) and boosting AI-related names such as AMD, Broadcom and Eaton. The beat helped snap a four-day slide for the S&P 500 and Dow, though indexes remain down on the week amid a pullback in growth stocks and debate whether Nvidia has reached a growth peak. Fed minutes showed officials split over the greater near-term risk between cooling labor markets and inflation, with many signaling no further rate cuts this year, traders pricing only a 33% chance of a 25bp December cut, and delayed September payrolls due Thursday.

Analysis

Nvidia reported quarterly results that beat Wall Street expectations on both earnings and revenue and issued a stronger-than-expected fourth-quarter sales forecast; the stock jumped nearly 5% in after-hours trading and CEO Jensen Huang said demand for current-generation Blackwell chips was "off the charts." Futures reacted positively with Dow futures up ~110 points (~0.3%), S&P futures +0.8% and Nasdaq 100 futures +1.4%, and the report lifted related AI ecosystem names including AMD, Broadcom and Eaton in after-hours trading.

The beat helped snap a four-day slide in the S&P 500 and Dow but indexes remain down on the week amid a pullback in several growth stocks and investor concerns about elevated valuations, debt financing and potential chip depreciation. Market commentary flagged a central question of whether Nvidia has reached a growth and market-share peak, introducing risk to valuation-sensitive positioning.

Fed minutes showed disagreement among officials over whether a cooling labor market or inflation poses the greater near-term risk, with "many" officials favoring no further rate cuts this year; traders place only a 33% probability of a 25bp December cut per the CME FedWatch Tool. The delayed September nonfarm payrolls report due Thursday creates a near-term data catalyst that could reprice risk appetite for tech and AI exposures.

Key Decisions for Investors

• Increase selective exposure to Nvidia given the beat and strong Blackwell demand but limit position size because questions remain about peak growth and valuation risk
• Add tactical exposure to high-quality AI supply-chain beneficiaries such as Broadcom and Eaton that reacted positively, while trimming or hedging more speculative growth names that have been weak this week
• Monitor Fed signaling and the delayed September payrolls closely—the market-implied 33% chance of a December cut reduces the odds of a clear rate tailwind, so defer broad cyclical rotation until after the data
• Use options or correlated hedges to protect recent gains and guard against short-term volatility from macro surprises, debt-financing concerns or signs of chip demand softening