US stocks surged on Thursday after Nvidia delivered a standout quarterly performance and issued a robust forecast that restored confidence in the artificial intelligence trade underpinning the current bull market.
The Dow Jones Industrial Average rallied 621 points, or 1.3%, while the S&P 500 climbed 1.6%.
The Nasdaq Composite outperformed with a 2.2% gain.
Nvidia shares rose 4% after the company beat Wall Street’s expectations on both earnings and revenue.
The chipmaker also projected stronger-than-expected fourth-quarter sales.
CEO Jensen Huang said demand for its current-generation Blackwell chips is “off the charts,” pushing back against concerns that the sector is showing bubble-like dynamics.
The upbeat outlook helped bolster sentiment across the AI ecosystem. Stocks such as Advanced Micro Devices and Broadcom advanced in after-hours trading, while companies tied to power infrastructure — including Eaton — also moved higher.
The rally came after a stretch of weakness for AI-linked equities and major indices.
Through Wednesday, the S&P 500 was down roughly 3% for the month, while the tech-heavy Nasdaq had dropped nearly 5%.
Nvidia itself was down 7% for November before Thursday’s rebound.
Investors have recently questioned whether valuations in the AI sector had become overheated, with some pointing to circular financing and stretched expectations.
Nvidia’s results offered reassurance that demand remains firm, at least for now.
US jobs data
Equities received an additional lift from US labour-market data released earlier in the day.
The Bureau of Labor Statistics reported that nonfarm payrolls increased by 119,000 in September, marking a rebound after a decline in the prior month.
The unemployment rate edged up to 4.4%, its highest level in nearly four years, as more people entered the labour force.
Average hourly earnings rose 0.2% from August.
The report, delayed due to the government shutdown, became one of the first major datasets released following the reopening.
Because data collection had already been completed before the shutdown began on Oct. 1, the BLS proceeded with publication.
A separate report showed initial claims for US unemployment benefits fell to 220,000 in the week ending Nov. 15, down 8,000 from the prior period and below consensus expectations of 227,000.
Continuing claims rose to 1.97 million, according to the Labor Department, indicating some softening but still pointing to resilience among employers.
Together, the strong corporate results and steady labour data reinforced investor confidence after weeks of volatility, helping drive one of the market’s strongest sessions of the month.
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