Nvidia earnings day: markets rally as traders await AI-driven results
Nvidia is due to report quarterly earnings after the U.S. market close, prompting a cautious rally across global stocks and crypto markets. U.S. futures were modestly higher (Dow futures +27, S&P 500 futures +0.1%, Nasdaq 100 futures +0.3%) after a strong cash session in which the S&P 500 rose ~0.8%, Nasdaq ~1% and the Dow climbed ~0.8% (Dow +370 points). Asian markets led gains—Japan’s Nikkei jumped to a record, South Korea’s Kospi cleared 6,000 for the first time, Taiwan notched a fifth straight record close, and major indexes in Australia, Hong Kong and China also rose. AMD rallied ~8.8% after Meta announced a multiyear deal for up to 6GW of AMD GPUs; Nvidia was up ~0.7% ahead of its report. Bitcoin rebounded roughly 2% back toward $65,000 after briefly dipping below $63,000. Market attention centers on Nvidia’s results and commentary around AI chip demand and hyperscaler capital spending. Key implications for traders: volatility around the after-hours report, possible spillover into large-cap tech and AI-related crypto sentiment, and short-term directional moves in risk assets depending on revenue, guidance and AI-sales cadence reported by Nvidia.
Bullish
Nvidia’s earnings day is broadly bullish for markets in this context because: 1) Pre-market and global moves show risk-on sentiment—major indexes and Asian markets rallied ahead of the report. 2) Positive catalyst spillover: AMD’s strong move after Meta’s GPU deal highlights continued investor appetite for AI/SaaS infrastructure winners, which benefits chip names and AI-exposed assets. 3) Crypto sensitivity: Bitcoin’s quick rebound toward $65k suggests risk-on flows into crypto alongside equities. Historically, strong Nvidia results or upbeat guidance have lifted large-cap tech and AI-related assets (example: prior quarters where Nvidia beat estimates and shares drove broader tech gains). Short-term: Expect elevated volatility at the release and immediate after-hours trading; favorable beats/guidance could produce sharp, quick rallies in Nvidia and related tech/AI plays, plus positive sentiment in risk assets including BTC. Unfavorable results or weak guidance could trigger rapid deleveraging in overvalued AI/tech names and a pullback in risk-on crypto flows. Long-term: Sustained strength in Nvidia revenue and clear signs of durable hyperscaler AI spending would support a continued bull case for AI infrastructure equities and related market allocation toward tech and crypto; conversely, signs that AI capex is peaking would pressure valuations. Traders should size positions for event risk, use options or stop rules to manage post-earnings swings, and monitor guidance and commentary on hyperscaler demand rather than just headline EPS.