By Frank Walbaum, Market Analyst at Naga
US equity futures pointed to a strong open on Thursday, supported by Nvidia’s rally after its earnings release yesterday, setting a tone of confidence that spread to other AI and semiconductor-linked names.
Nvidia closed its fiscal Q3 with a net income of USD 31.9 billion, up 65% year-on-year and 21% above the prior quarter. Revenue hit USD 57 billion, a 62% annual increase, underscoring Nvidia’s leading role in the AI infrastructure ecosystem. Looking ahead, Nvidia forecasts nearly USD 65 billion in revenue for the next quarter, again setting a new benchmark for the industry.
Adding to the bullish backdrop, the US Commerce Department plans to approve the sale of up to 70,000 advanced AI chips to the UAE and Saudi Arabia, a significant expansion of Nvidia’s export opportunity and a signal of policy alignment in favour of US tech.
However, the release of the minutes from the Federal Reserve’s October meeting introduced a note of caution. While the Fed cut rates, divergences among officials over labor-market risks and inflation leave the door open to rate stability rather than further cuts in 2025. Several participants suggested that no additional cuts may be needed this year, contradicting more optimistic market expectations.
Looking ahead, investor focus will shift to today’s jobs data, which could critically influence the Fed’s policy path. A weak print could raise rate-cut odds and further fuel equity upside. On the other hand, solid labour data may lead to expectations of a rate hold and pressure equities.