US stocks rally as Nvidia's results reignite AI momentum: Nasdaq rockets 2%

US equities jumped after Nvidia posted better-than-expected quarterly revenue and earnings and forecast stronger-than-expected Q4 sales, with CEO Jensen Huang saying demand for its Blackwell chips is “off the charts,” driving Nvidia shares higher and reviving the AI trade; the Dow rose 621 points (1.3%), the S&P 500 gained 1.6% and the Nasdaq outperformed with a 2.2% advance. The upbeat outlook lifted wider AI- and infrastructure-linked names including AMD, Broadcom and Eaton, reversing earlier November weakness in which the S&P was down about 3% and the Nasdaq nearly 5%. The rally was reinforced by US labor data—nonfarm payrolls increased by 119,000, the unemployment rate ticked up to 4.4% and average hourly earnings rose 0.2%—and weekly initial claims fell to 220,000, together strengthening investor confidence after weeks of volatility.

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 company said demand for its current-generation Blackwell chips is "off the charts," and Nvidia shares rose about 4% on the print. The strong print and upbeat outlook sparked a broad market rally with the Dow up 621 points (1.3%), the S&P 500 up 1.6% and the Nasdaq outperforming with a 2.2% gain, while names tied to AI and power infrastructure including AMD, Broadcom and Eaton moved higher in response. The move reversed part of a recent pullback: the S&P 500 had been down roughly 3% for November, the Nasdaq nearly 5%, and Nvidia itself was down about 7% before the rebound, so today’s results served as reassurance that near-term demand remains intact. US economic data reinforced the rally as nonfarm payrolls rose 119,000, unemployment ticked to 4.4%, average hourly earnings rose 0.2%, initial claims fell to 220,000 and continuing claims rose to 1.97 million; however, the article notes lingering valuation concerns and warnings of circular financing and stretched expectations that could amplify volatility if future guidance or labour metrics weaken.

Key Decisions for Investors

• Consider selectively increasing exposure to NVDA on the thesis of sustained Blackwell demand but size positions conservatively given recent run-up and prior November weakness
• Add targeted exposure to high-quality AI suppliers and infrastructure names (AMD, AVGO, ETN) on disciplined pullbacks or after confirmatory earnings rather than buying intraday spikes
• Monitor Nvidia’s Q4 sales execution and near-term demand indicators plus weekly claims/unemployment as the primary triggers to add to or reduce risk exposure
• Implement risk controls (position limits, stop-losses or hedges) to protect against a rapid re-pricing if valuation concerns or reports of circular financing re-emerge