Nasdaq Composite: Traders Focus on Nvidia Results While Alphabet Leads Tech

What Is Driving Today’s Rebound?

Wall Street saw a modest rebound on Wednesday as major indexes stabilized following a sharp pullback earlier in the week.

Traders focused on Nvidia’s quarterly earnings, widely viewed as a critical moment for the broader AI trade that has powered markets through 2024.

Concerns around the monetization of AI investments, rising corporate debt tied to expansion efforts, and recent weakness in megacap tech kept sentiment cautious.

How Are Traders Positioning Ahead of Nvidia’s Results?

Nvidia gained 2.3% heading into its report, with options pricing from ORATS signaling an expected post-earnings swing of roughly 7% in either direction.

Alphabet provided early support to the tech space with a 5% jump, though other growth names traded mixed.

The S&P 500’s recent decline — down 4.4% from its October peak — has raised debate over stretched valuations and pushed expectations for a December Federal Reserve rate cut further out of view.

Which Indexes and Sectors Are Leading the Session?

At 16:15 GMT, the Dow traded lower by 0.22%, while the S&P 500 rose 0.30% and the Nasdaq advanced 0.59%.

Energy lagged sharply as U.S. reports suggesting a proposal to end the Russia-Ukraine conflict pressured crude.

Seven of the 11 S&P sectors traded higher, with Communication Services and Technology leading.

Is Tech Still the Market’s Anchor?

The Technology sector climbed 0.93%, supported by gains across semiconductor and software names. Lam Research, KLA, ON Semiconductor, and Freeport-McMoRan were among the session’s notable outperformers.

Alphabet’s strength helped lift Communication Services by 1.48%, making it the best-performing sector of the day. Yet worries remained tied to the sustainability of the AI trade.

Investors continued to evaluate debt levels at major tech firms and questioned whether AI-driven spending cycles could produce near-term revenue benefits. Nvidia’s results and guidance were expected to offer crucial clarity.

How Are Consumer Trends InfluencingGo Retail Stocks?

Lowe’s jumped more than 5% after beating profit expectations in the third quarter, while TJX added 0.3% as deal-driven shoppers boosted outlooks.

In contrast, Target slipped after reporting a steeper-than-expected drop in sales tied to strained consumer spending. Walmart’s results later this week could provide important read-through on retail resilience heading into year-end.

What Are Traders Watching in the Fed and Labor Data?

The Fed’s October meeting minutes — tied to the central bank’s 25-basis-point rate cut — were due later in the session at 19:00 GMT. Traders also prepared for Thursday’s September jobs report, a key determinant for rate-path expectations.

Short-Term Market Forecast

The near-term outlook leans cautiously bullish as indexes attempt to stabilize above this week’s lows. Nvidia’s earnings could serve as a decisive catalyst; stronger guidance may revive interest in AI-linked names and lift broader sentiment.

A supportive jobs report would reinforce expectations that the Fed can maintain its current path without tightening financial conditions further.

However, valuations across tech remain elevated, and any disappointment from Nvidia or softer labor data could limit upside momentum. For now, traders appear willing to buy selectively while waiting for clearer confirmation of earnings strength and consumer resilience.

More Information in our Economic Calendar.