Dow Futures experienced a significant increase on Thursday, following robust performance metrics from Nvidia, a prominent player in the AI sector, which alleviated apprehensions regarding the elevated valuations prevalent in the tech industry. Upcoming earnings from retail behemoth Walmart are on the agenda, alongside the highly awaited official jobs report for September.

Nvidia has delivered a significant boost to global markets, as the chipmaker’s impressive third-quarter earnings and optimistic fourth-quarter forecast have, for the moment, eased investor concerns regarding the potential unsustainability of valuations stemming from the artificial intelligence boom. The world’s most valuable company reported third-quarter sales growth of 62%, marking the first acceleration in seven quarters. Additionally, it projected fiscal fourth-quarter sales of $65 billion, plus or minus 2%, in contrast to analysts’ average estimate of $61.66 billion, based on data. CEO Jensen Huang dismissed apprehensions regarding an AI bubble, skepticism that had led to a nearly 8% decline in Nvidia’s shares in November, following an impressive surge of 1,200% over the past three years. There has been considerable discussion regarding the existence of an AI bubble. “From our vantage point, we see something very different,” stated Jensen Huang. Huang also reiterated that the demand for Nvidia’s chips, driven by AI, remained robust beyond the hyperscalers on market, indicating that the company is poised to continue reaping benefits from this trend in the upcoming quarters. “We are present in every cloud. The reason developers appreciate our presence is due to our ubiquity,” he stated. “Our presence spans cloud environments, on-premise solutions, robotic systems, edge devices, and personal computers, among others.” One architecture. Operations proceed seamlessly. It is remarkable. Huang also reiterated a forecast from last month indicating that the company had $500 billion in bookings for its advanced chips through 2026. The Donald Trump administration is reportedly urging Congress to dismiss a proposed measure that would restrict Nvidia’s capacity to sell artificial intelligence chips to China and other embargoed nations.

Dow futures experienced a significant increase on Thursday, driven by Nvidia’s earnings surpassing expectations, which contributed to a renewed sense of confidence, especially among the heavily weighted technology stocks. At 03:20, the S&P 500 futures traded 85 points, or 1.3% higher; Nasdaq 100 futures climbed 430 points, or 1.8%; and Dow futures rose 290 points, or 0.6%. All three major U.S. stock indexes concluded Wednesday’s trading session with gains, breaking a four-day decline for both indexes. However, they remain positioned for a negative week due to the severity of the recent downturn. Nvidia shares experienced a significant increase in premarket trading following the release of its quarterly results, which surpassed expectations. The company’s optimistic guidance has further bolstered investor sentiment regarding the AI sector. In other developments, retail behemoth Walmart is poised to unveil its quarterly earnings, while the Bureau of Labor Statistics is scheduled to publish the September nonfarm payrolls data, a release postponed due to the U.S. government shutdown. “Should the jobs data fail to swing the market towards a Fed cut in December (currently 50% priced), then pressure remains on equity markets,” noted analysts.

The U.S. Labor Department’s highly anticipated employment report for September is set to be unveiled later in the session, and it is expected to affirm the persistently lackluster conditions prevailing in the crucial labor market. The report experienced a delay due to the 43-day government shutdown, which also led to the cancellation of the October report. This situation has heightened the importance of this release in anticipation of the forthcoming Federal Reserve meeting. The Federal Reserve will continue to be deprived of a significant portion of the data it typically depends on during its upcoming policy meeting scheduled for December 10, as the next jobs report has been delayed until December 16, six days later than originally anticipated. Nonfarm payrolls are expected to have risen by 50,000 jobs in September, surpassing the 22,000 positions added in August. Meanwhile, the unemployment rate remains stable, hovering near a four-year high of 4.3%. “In years past a ~50K monthly jobs pace would be a bright green light for the Fed to slash rates, but in the current environment, with a much lower break-even level (the break-even level for the U.S. economy might only be around 50K or less) and elevated inflation, the central bank won’t be as quick to act,” noted analysts.

Walmart, the largest retailer globally, is set to report earnings later in the session, providing potential insights into the outlook for the vital holiday shopping season. Analysts anticipate that Walmart will disclose revenue of $177.5 billion, reflecting an approximate 4.7% growth compared to the previous year, which would yield earnings of about $0.60 per diluted share, an increase from $0.58 a year prior. The forthcoming results follow the announcement from the retail giant regarding the impending retirement of CEO Doug McMillon next year, concluding over a decade of leadership. Since assuming the role in 2014, McMillon has managed a tripling of Walmart’s value to $817 billion, supported by a sustained initiative to compete with Amazon in the realm of e-commerce sales. The sector has experienced a varied performance thus far this week. Target has adjusted the upper limit of its full-year earnings guidance downward and has reaffirmed its expectation for a decline in sales during the current quarter. Meanwhile, Home Depot has projected a more significant decrease in its full-year profit. Conversely, Lowe’s announced third-quarter adjusted earnings that surpassed analyst forecasts, and raised its full-year 2025 sales projections.

Oil prices increased on Thursday, positioning themselves for weekly gains, supported by a larger-than-anticipated reduction in U.S. crude inventories. Brent futures increased by 0.6% to $63.86 per barrel, while U.S. West Texas Intermediate crude futures also saw a rise of 0.6%, reaching $59.59 per barrel. Both contracts are poised to record weekly gains exceeding 1%, in anticipation of the November 21 deadline established by the U.S. for companies to conclude their business dealings with Rosneft and Lukoil, the two largest oil producers in Russia. The larger-than-anticipated reduction in U.S. crude stockpiles reported on Wednesday provided some support to prices, with crude inventories declining by 3.4 million barrels in the week ending November 14, according to the Energy Information Administration. Crude prices experienced a significant decline on Wednesday, indicating that the U.S. had advised Ukraine to consider a U.S.-drafted framework aimed at resolving the conflict with Russia.