Wall Street Climbs Before Nvidia Report and Jobs Test/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks climbed Wednesday as investors prepared for key developments including Nvidia’s earnings and an upcoming jobs report. The S&P 500 rebounded from a four-day slump, while AI and tech-related stocks helped drive gains. Traders remain cautious as inflation, interest rate expectations, and market valuations loom large.
Wall Street Midweek Rally Quick Looks
- S&P 500 gains 0.8% after four-day slide.
- Dow up 100 points; Nasdaq jumps 1.3%.
- Nvidia up 3.2% ahead of earnings report.
- Lowe’s climbs after strong quarterly profit.
- Target dips despite beating earnings estimates.
- Constellation Energy up on $1B federal loan.
- Traders await key U.S. jobs report Thursday.
- Fed interest rate outlook continues to sway markets.
- 10-year Treasury yield slightly lower at 4.11%.
- Global markets remain mixed with minor fluctuations.
Deep Look: Wall Street Gains as Nvidia Earnings, Jobs Report Loom Large
NEW YORK (AP) — U.S. stocks rallied Wednesday morning, snapping a four-day losing streak as Wall Street braced for two pivotal moments: Nvidia’s much-anticipated earnings report and the release of delayed U.S. job data. The movement signals renewed investor optimism, tempered by caution as markets evaluate both corporate profits and economic trends.
Major Indexes Rebound
The S&P 500 rose 0.8%, recovering from its longest stretch of losses in nearly three months. The Dow Jones Industrial Average gained 100 points (0.2%), while the Nasdaq composite surged 1.3%, boosted by strength in the technology sector.
Markets have been volatile in recent weeks, with sharp fluctuations not just across days but within trading hours. Central to this turbulence are two concerns: overstretched stock valuations and uncertainty over whether the Federal Reserve will continue cutting interest rates as aggressively as markets had hoped.
Corporate Movers: AI, Energy, and Retail in Focus
One of the day’s biggest stories was Nvidia, which climbed 3.2% in morning trading. The AI chipmaker’s upcoming earnings release—set for after the market closes—could set the tone for the rest of the week. Nvidia’s performance matters not just for its size (briefly crossing $5 trillion in market value this year) but also for its symbolic weight in the AI sector.
“Nvidia is the linchpin of this rally,” one analyst noted. “If they deliver, they could restore confidence in AI-linked tech.”
Elsewhere in the market:
- Constellation Energy jumped 5.2% after the U.S. Department of Energy announced a $1 billion loan to restart the Three Mile Island nuclear plant in Pennsylvania.
- Lowe’s gained 3.5% after surpassing Wall Street expectations on summer profits.
- Target dipped 0.5% despite beating profit estimates, as revenue fell short and the company warned of challenges ahead in the holiday season.
The Nvidia Factor: A Barometer for AI and Market Sentiment
Nvidia’s upcoming earnings could be the make-or-break moment for both the AI investment narrative and the tech-heavy Nasdaq. The company is not only the most valuable semiconductor firm but also the largest single stock on Wall Street by weight in the S&P 500.
Critics have raised concerns that the AI surge may be overhyped, drawing comparisons to the dot-com bubble of the early 2000s, which saw massive valuations evaporate when tech firms failed to deliver sustained profits. Nvidia’s ability to show strong earnings growth could help ease those concerns and justify its valuation.
Big Data Incoming: Delayed Jobs Report on Deck
In addition to earnings, investors are closely watching a U.S. jobs report due Thursday. Originally postponed due to the recent government shutdown, the report will provide September employment figures—critical data that can influence the Fed’s policy path.
The labor market has cooled somewhat in 2025, and that slowdown has already prompted the Federal Reserve to cut interest rates twice this year. Wall Street had priced in additional cuts, particularly in December. But in recent days, some Fed officials have signaled a pause, pointing to persistent inflation above the Fed’s 2% target.
“If job growth is stronger than expected, that could delay further rate cuts,” a market strategist said.
Interest rates remain a central factor behind the recent market surge. Lower rates typically boost stock prices by reducing borrowing costs and increasing the present value of future earnings.
Bond Market Moves: Treasury Yields Slide
In the bond market, the 10-year Treasury yield fell slightly to 4.11%, down from 4.12% on Tuesday. This modest decline reflects traders adjusting their expectations about future Fed decisions.
Yields had spiked earlier in the fall on fears that rates would remain higher for longer, pressuring stocks and other risk assets. For now, easing yields offer temporary relief to equity markets.
Global Snapshot: Mixed Sentiment Overseas
Markets in Europe and Asia posted mostly modest moves:
- European indexes traded narrowly higher.
- Asian markets were mixed, reflecting caution ahead of U.S. events.
With global investors watching both U.S. interest rate policy and Nvidia’s results, market momentum could shift sharply depending on how this week’s developments unfold.
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