Nvidia’s Strong Results Show AI Fears Are Premature

Two economic data releases, including the third-quarter GDP and October spending data, will be delayed due to the ongoing recovery efforts of government statistics agencies following a recent prolonged shutdown. This delay highlights the impact of the shutdown on the timely dissemination of important economic indicators.

Home sales in the U.S. increased to an eight-month high in October, driven by a decline in mortgage rates. This marks the second consecutive month of rising sales, indicating a potential recovery in the housing market as more buyers are drawn back to the market.

Industrial product prices in Canada rose for the fifth consecutive month, marking a 13th straight year-over-year increase, according to data from Statistics Canada. This trend reflects ongoing inflationary pressures in the market.

Manufacturing activity in the Philadelphia region contracted slightly this month, contrary to expectations for growth, as new orders and shipments struggled.

The South African Reserve Bank has lowered its main repo rate to 6.75%, responding to expectations of a decrease in inflation amid anticipated economic growth. This decision reflects the bank's strategy to support the economy while managing inflationary pressures.

Job growth in the U.S. accelerated in September, defying expectations as the economy approached a government shutdown. This positive trend indicates resilience in the labor market despite ongoing economic challenges.

Global tech shares have surged, driven by Nvidia's impressive performance in the AI sector. The company reported record earnings of $57 billion, exceeding Wall Street expectations and alleviating concerns about the sustainability of the AI boom. This positive sentiment has contributed to a broader market rally.

Nvidia's Q3 earnings report revealed $57 billion in sales, significantly exceeding earnings estimates, with $51.2 billion coming from data-center sales. The company also projected strong future growth, indicating a positive outlook for the AI sector.