Nvidia Quells AI Jitters, ‘Many’ Fed Officials Lean Against December Cut | The Opening Trade 11/20

Investors are focusing on the upcoming jobs report following a rally fueled by Nvidia's strong earnings. Nvidia's performance has exceeded expectations, positively impacting U.S. stock futures and international equities. The anticipation of the jobs report adds another layer of significance as it may influence market sentiment and expectations regarding Federal Reserve policies.

The US added 119,000 jobs in September, exceeding the estimate of 51,000, according to the Bureau of Labor Statistics. The unemployment rate rose to 4.4%, while hourly earnings increased by 0.2% from the previous month. The release of the September jobs report was delayed due to a government shutdown.

HOOPP Realty Finance, the real estate financing arm of the Healthcare of Ontario Pension Plan, is planning to raise up to C$500 million ($356 million) through its inaugural bond offering, as reported by sources familiar with the situation.

US Treasuries experienced gains following a mixed jobs report that indicated an increase in the unemployment rate. This development has kept the possibility of a Federal Reserve rate cut next month alive, reflecting ongoing market reactions to labor market conditions.

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.

Applications for US unemployment benefits fell to 220,000 last week, suggesting that employers are retaining their workforce despite economic uncertainties. This decline indicates a potential stabilization in the labor market as companies continue to hold onto their employees.

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.

Piper Sandler has reiterated its Overweight rating on Nvidia stock, citing strong visibility in the company's performance. This positive sentiment reflects confidence in Nvidia's ongoing success, particularly in the AI sector, which is driving significant growth.