Global stock markets saw a lift on Thursday, buoyed by spectacular earnings from tech heavyweight Nvidia.
Investors, jittery over concerns of an “AI bubble,” found reason to breathe easier as the chipmaker reported results that far exceeded expectations.
Nvidia, with a market valuation of $4.5 trillion, revealed third-quarter revenues of $57 billion—well ahead of what analysts predicted.
CEO Jensen Huang downplayed fears that the AI boom might be stalling, telling reporters on Wednesday night that, from his perspective, the sector’s momentum remains strong.
“We’ve heard a lot about an AI bubble,” Huang said. “From where we stand, it looks very different.”
The company also projected revenue of $65 billion for the current quarter, reviving hopes among investors for a potential “Santa rally” to round off what has been a strong 2025 for markets.
FTSE 100 Recovers After a Rough Week
The UK’s FTSE 100 opened up 0.6% on Thursday, rebounding after losing more than 4% over the past week.
Tech-focused investment trusts like Polar Capital Technology and Scottish Mortgage led the gains.
Nvidia accounts for 10.9% of Polar Capital’s portfolio and 3.3% of Scottish Mortgage’s holdings, highlighting the outsized influence of the chipmaker on tech-driven funds.
While the FTSE 100 isn’t as exposed to global tech turbulence as some of its international peers, it mirrored broader markets in Europe and Asia, which also experienced strong gains.
France’s CAC rose 1.2%, Germany’s Dax added 1%, and Japan’s Nikkei 225 jumped 2.7%.
Wall Street Looks Poised for a Strong Open
US markets are expected to follow suit, with futures pointing to a robust start.
Nasdaq futures suggest a 1.8% gain, while the S&P 500 is set to rise by 1.2%.
Ben Barringer, head of technology research at Quilter Cheviot, described Nvidia’s earnings as “just what the market needed after a nervous couple of weeks.”
He added that the company’s performance alleviated fears of a slowdown, and this confidence is likely to ripple through the broader market.
“Given how much hinged on these results, and their resounding success, investors may yet get the Santa rally they’ve been hoping for in December,” Barringer noted.
Caution Lingers Over Fed Rate Moves
But not everyone is convinced the party is guaranteed.
Kyle Rodda, a senior financial market analyst at Capital.com, pointed out that AI valuations are only one piece of the puzzle shaping market sentiment for the end of 2025.
“The other part is the Fed rate outlook,” Rodda said.
Overnight release of FOMC minutes showed divisions within the committee over future US interest rate policy.
As a result, traders are scaling back expectations for a December rate cut, with probabilities now at 33%.
Markets will now focus on the delayed September US jobs report to help clarify whether the Federal Reserve might pivot before year-end.
Looking Ahead
After weeks of nervous trading, Nvidia’s blockbuster results have reignited optimism—but caution remains.
Investors are watching not just AI earnings, but also the Fed and economic data, to see whether global markets can sustain momentum into December.
If all aligns, 2025 could close with a flourish.
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