Daily Market Update: Tech Stocks and Crypto Rally on Nvidia’s Q3 Results

TLDR

• Nvidia reported record Q3 revenue of $57 billion, beating Wall Street expectations of $54.7 billion by over $2 billion
• Bitcoin recovered to around $91,500 after falling below $89,000 for the first time since late April
• Nasdaq futures jumped 1.8% in after-hours trading, leading gains across major stock indexes
• Crypto stocks including Coinbase, Strategy, and Circle all saw gains after initially finishing the day down
• Nvidia provided Q4 guidance of $65 billion in revenue, with CEO Jensen Huang reporting Blackwell processor demand is “off the charts”

Nvidia’s third-quarter earnings report on Wednesday lifted both stock futures and cryptocurrency prices after weeks of market decline. The chip maker posted record revenue of $57 billion for the quarter ended October 26, surpassing analyst projections.

The company’s profit reached $31.9 billion, a 65% increase from the previous year. Wall Street had been watching Nvidia’s results closely as a measure of the artificial intelligence sector’s health.

Nvidia shares jumped over 5% in after-hours trading to $196 after closing at $186.52. The stock has climbed nearly 39% this year as demand for AI chips continues.

NVIDIA Corporation, NVDA

The earnings beat helped reverse losses in crypto-related stocks. Coinbase, Strategy, and Circle Internet Group all saw gains after hours despite finishing the regular trading session down.

Crypto exchange Bullish rose 1% in post-market trading. The company had reported its strongest quarter since going public in August but finished the day down 3.7%.

Crypto Markets Respond to Tech Rally

Bitcoin recovered to approximately $91,500 after touching a 24-hour low of $88,540 on Wednesday. The price had dipped below $89,000 for the first time since late April.

The recovery coincided with Nvidia’s earnings announcement. Bitcoin is down 0.6% over the past day after falling more than 10% in the previous week.

Ethereum also rebounded after falling to around $2,873 on Wednesday, its lowest level since mid-July. The cryptocurrency climbed back above $3,000 but remains down 1.9% on the day.

Stock Futures Rise Across Indexes

Nasdaq futures led market gains, rising 1.8% in after-hours trading. S&P 500 futures increased 1.2%, while Dow Jones Industrial Average futures climbed 0.6%.

Major tech stocks saw gains after the bell. Apple, Microsoft, Alphabet, Amazon, and Meta all posted increases following Nvidia’s report.

The S&P 500 and Dow Jones Industrial Average had broken a four-day losing streak during Wednesday’s regular session. Major indexes remain in negative territory for the week.

Nvidia CEO Jensen Huang said demand for the company’s Blackwell processors is “off the charts.” The statement helped ease concerns about a potential slowdown in AI-related stocks.

The company provided fourth-quarter revenue guidance of $65 billion, exceeding analyst expectations. The forecast indicates continued strong demand for artificial intelligence technology.

Federal Reserve minutes from the October meeting revealed policymakers hold differing views on economic risks. Some officials expressed concern about cooling labor conditions while others focused on persistent inflation.

Investors await Thursday’s delayed September nonfarm payrolls report from the Bureau of Labor Statistics. The report was postponed due to the federal government shutdown.

Walmart is scheduled to report earnings Thursday morning, providing insight into retail sector performance ahead of the holiday season.

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