4:20pm: Nvidia sees losing day
Stocks stumbled into the close on Thursday, with all major indexes sliding after an abrupt midday reversal.
The Nasdaq fell 2.2% to 22,078, the S&P 500 dropped 1.6% to 6,539, the Dow Jones lost 0.8% to 45,752, and the Russell 2000 slipped 1.8% to 2,305.
Tech bellwether Nvidia led the retreat, finishing down 3% despite reporting blockbuster earnings earlier in the day. Investors appeared to take profits after a strong run, while digesting the long-delayed September jobs report, which showed stronger-than-expected hiring growth at the end of the third quarter.
Federal Reserve officials weighed in on the economic outlook. Atlanta Fed President Raphael Bostic said rising services inflation is “disturbing,” though he described the labor market as cooling but stable. Meanwhile, White House official Kevin Hassett suggested the central bank should consider a December rate cut, though he warned that the ongoing government shutdown could weigh on fourth-quarter growth.
Concerns over AI and its market impact also made headlines. Fed Governor Austan Goolsbee cautioned that soaring AI investments could be fueling a bubble, adding another layer of uncertainty for investors navigating choppy markets.
All told, the session highlighted a market grappling with strong corporate results, solid labor data, and a mix of economic headwinds, reminding traders that even a tech-led rally can reverse on a dime.
3:45pm: Proactive news headlines
- Trust Stamp Inc (NASDAQ:IDAI, ISE:AIID) was selected for the 2026 Trust Village Incubator in recognition of its privacy-preserving identity technology, including its StableKey innovation.
- American Resources Corp (NASDAQ:AREC) affiliate ReElement Technologies signed a commercial agreement with ERI to recycle end-of-life magnets into high-purity rare earth oxides.
- Excellon Resources Inc (TSX:EXN, OTCQB:EXNRF) reported progress on its Mallay silver-lead-zinc mine restart, completing over 2,800 metres of underground access restoration in Phase One.
- Poolbeg Pharma PLC (AIM:POLB, OTC:POLBF) shares rose after securing a European patent for its POLB 001 treatment targeting severe influenza by modulating immune response.
- Ilika PLC (AIM:IKA, OTCQX:ILIKF) advanced its Stereax and Goliath solid-state battery programs, completing process qualification for its Stereax M300 micro-battery production line.
- Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF) is progressing on its Paradox Basin project by connecting wells to pipelines and advancing regulatory and commercial arrangements.
- 88 Energy Ltd (AIM:88E, ASX:88E, OTCQB:EEENF) expanded its Alaskan footprint with 14 new North Slope leases totaling 34,560 acres around Project Leonis.
3:05pm: Market movers
- Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) posted another blockbuster quarter with surging demand for its AI chips and Blackwell products, prompting analysts to suggest Wall Street may need to raise long-term earnings forecasts.
- Cracker Barrel Old Country Store (NASDAQ:CBRL) shareholders reaffirmed support for CEO Julie Felss Masino despite earlier controversy over a logo redesign, electing nine of 10 board nominees at the annual meeting.
- Block Inc (NYSE:SQ) shares rose nearly 6% after unveiling a three-year growth outlook and announcing a $5 billion increase to its share repurchase program.
- Abbott Laboratories (NYSE:ABT) agreed to acquire Exact Sciences in a $21 billion deal, expanding into cancer diagnostics with products like Cologuard and Cancerguard.
- Trust Stamp Inc (NASDAQ:IDAI, ISE:AIID) was selected for the 2026 Trust Village Incubator, highlighting its privacy-focused identity technology and StableKey innovation.
- Bath & Body Works Inc (NYSE:BBWI) shares plunged about 20% after the company cut its full-year outlook and reported weaker-than-expected quarterly results.
- Walmart Inc (NYSE:WMT, XETRA:WMT) shares jumped nearly 4% following stronger-than-expected third-quarter results and an upgraded full-year revenue outlook.
2:15pm: Nvidia in the red
Despite reporting another blockbuster quarter, Nvidia shares fell more than 2% on Thursday, dragging the Nasdaq lower. The decline had little to do with the company’s fundamentals and more to do with how much investors had already priced in, and concerns about what comes next. More than 75% of institutional investors already hold the stock, and its weight in the S&P 500 limits the room for additional buying, meaning even stellar results can trigger profit-taking.
Nvidia’s growth story is enormous, but that scale is also fueling caution. Bank of America estimates the company could earn $20 per share by 2030, or $40 under a more aggressive AI spending scenario, while UBS projects $350 billion to $400 billion in revenue by 2026. The questions investors face now are not about execution, but whether AI demand can sustain such lofty projections and whether customers like OpenAI and Anthropic can finance massive GPU orders.
Real-world constraints—data center space, power limits, rising component costs, and debt-financed customer orders—add further uncertainty. Even with strong guidance of $65 billion in revenue and 75% gross margins next quarter, expectations were already sky-high. Thursday’s pullback reflects market psychology more than Nvidia’s business outlook: demand remains robust, but it will take an unexpected upside to lift the stock further.
1:10pm: Stocks turn red
Stocks slid into the afternoon after a morning rally led by Nvidia began to lose momentum. By 1 p.m., the Dow had dipped 0.1% below its opening level, the S&P was down 0.2%, and the Nasdaq had fallen 0.3%.
Nvidia, which had powered much of the morning’s gains, turned negative in the afternoon, slipping 0.6%. Whether this signals lingering concerns over AI stock valuations—a theme that has rattled markets recently—remains uncertain. What’s clear, though, is that investors are still treading carefully.
12:05pm: Existing home sales rise
US existing home sales increased 1.2% in October to a 4.1 million-unit annual pace, marking the second consecutive monthly gain.
While sales remain below historical norms due to affordability challenges, easing mortgage rates and greater housing supply have helped lift activity, keeping home price growth moderate, analysts noted.
Wells Fargo wrote that the rise aligns with higher mortgage applications for purchases, suggesting gradual improvement in sales over the coming months. However, elevated homeownership costs and the prevalence of sub-5% mortgage rates among current homeowners are expected to limit a strong rebound, with the “mortgage lock-in” effect likely to constrain new supply.
11:10am: Rally back on?
It seems like markets can rally again, post-Nvidia earnings and US payroll, according to IG's Chris Beauchamp.
Beauchamp wrote about how "remarkable" it is "that just a 5% pullback can reset sentiment sufficiently for markets to react positively to earnings, but that is what has transpired."
"Stocks are up, almost uniformly across the board, while volatility is down," he added. "This is classic risk-on behaviour. If investors are still worried that the Fed won’t cut in December, they’re not showing it.”
10:40am: Jobs data boost markets
Markets are weighing strong earnings and headline job gains against signs of slowing employment.
Gina Bolvin, president of Bolvin Wealth Management Group, said, “Today’s delayed jobs report showed a labor market losing momentum—just as Nvidia’s breakout earnings reminded investors where the strength still lies.” She added, “The message is clear: follow the fundamentals, not the headlines.”
Yet some analysts urged caution. Eric Teal of Comerica Wealth Management noted that labor softness, combined with immigration-related impacts on sectors like construction and leisure, could pressure wages and inflation.
Chris Zaccarelli of Northlight Asset Management said the combination of strong earnings and jobs data may reassure investors, but warned that “it probably won’t discourage the naysayers given that Nvidia’s success doesn’t mean that valuations are appropriate across the board.”
Wells Fargo economists said the report offered little clarity for the Fed’s December meeting. The rise in unemployment “points to the FOMC struggling to maintain the ‘maximum employment’ part of its mandate,” they wrote. While the bank expects a 25 basis point rate cut, hawkish policymakers could opt to hold rates steady due to still-above-target inflation, solid job growth, and high asset valuations.
9.55am: Nvidia and Nasdaq head up strong gains
Wall Street has flown out of the blocks, led by Nvidia and its AI acolytes.
The Nasdaq is at the head of the pack, leaping 2.4%, with the S&P 500 jumping 1.8% and the Dow Jones up 1.4%.
Nvidia shares are up 4.9%, with four risers above it on the Nasdaq 100 leaderboard: are Broadcom, up 5.3%, Constellation Energy, Applovin and Tesla.
Among the other Mag 7 members, Alphabet is up 3.6%, Apple 2.2%, Meta 2.4%, Amzon 1.7% and Microsoft 0.9%.
9.15am: US jobs report
September's US jobs report, delayed from its 3 October scheduled release date, was firmer than expected, with 119,000 new additions to non-farm payrolls, well ahead of the 51,000 forecast.
The unemployment rate came in at 4.4% in September, up from August's 4.3%.
Average hourly earnings rose 0.2% month-on-month.
7.55am: Futures pointing strongly higher
US equity futures climbed firmly in early trade on Thursday, buoyed by strong earnings from Nvidia overnight that helped ease recent market jitters.
Nasdaq futures are out in front, up 1.6%, with those for the S&P 500 rising 1.2% and Dow Jones futures up 0.6%.
The day before saw Wall Street begin to rebound after four days of selling, with the Nasdaq up 0.6% to 22,564, the S&P gaining 0.4% to 6,642 and the Dow inching up 0.1% to 46,139.
The Magnificent 7 rose 0.8%, but more than 60% of the S&P 500 constituents lost ground, showing that the equity gains remained relatively narrow.
European markets were in green in early hours, with the London, Paris and Madrid benchmarks up between 0.6% and 0.7% and Germany’s DAX up 0.85%.
The Nvidia Corp (NASDAQ:NVDA) earnings flipped the mood, with tha near 5% rise in aftermarket trading adding a potential $230 billion to the company’s value.
Revenue jumped 62% to $57 billion, including $51.2 billion from the data centre division, while group net income leapt 65% to $32 billion, both well above Street expectations.
Jensen Huang, Nvidia’s founder and chief executive, said sales of Blackwell chips were "off the charts, and cloud GPUs are sold out".
This positivity has has ignited a "broad relief rally" around the world, said market analyst Neil Wilson at Saxo, noting that S&P futures are again trading above their 50-day moving average.
Still, there are concerns about the sustainability of the AI trade. Famous short seller Michael Burry warned of circular financing in the sector, describing it as a “fraud” with weak real demand.
Aftermarket gains were seen across the wider 'AI basket' of stocks, with names like Palantir rallying 4% after-hours, CoreWeave jumped 10%, Nebius rallied almost 9%, and Super Micro Computer rose 6%, and Mag 7 giants Amazon, Alphabet, Microsoft and Meta also rose.
Separately, the latest Fed minutes showed debate over inflation vs labour priorities, pushing expectations for a December rate cut lower to 34%, according to the CME FedWatch Tool.
US non-farm payrolls data on Thursday signals "the start of the return to business as usual for US data", said analyst Jim Reid at Deutsche Bank.
The US jobs report for September was meant to have arrived nearly seven weeks ago were it not for the government shutdown.
"Normally, a data release for a couple of months ago wouldn’t be too impactful, but a December cut likely relies on a weak print, which is clearly possible, especially optically when the breakeven rate of payrolls is as low as it is in 2025," said Reid.
"Remember the jobs report back on August 1, when huge downward revisions undercut the story of labour market resilience after Liberation Day, which paved the way for the Fed to resume cutting in September."
The consensus is for headline payrolls to come in at +50k with private payrolls +65k, with the unemployment rate steady at 4.3%.