U.S. Stocks Poised For Early Rally In Reaction To Upbeat Nvidia Results

(RTTNews) - Stocks are likely to show a strong move to the upside in early trading on Thursday, adding to the gains posted in the previous session. The major index futures are currently pointing to a sharply higher open for the markets, with the S&P 500 futures up by 1.5 percent.

The upward momentum on Wall Street comes amid a positive reaction to highly anticipated earnings news from market leader and AI darling Nvidia (NVDA).

Shares of Nvidia are surging by 5.1 percent in premarket trading after the chipmaker reported better than expected third quarter results and provided upbeat guidance.

The strong results from Nvidia have helped offset recent concerns about a potential AI bubble that have weighed on the markets over the past several sessions.

"Nvidia's results had the potential to be a make-or-break moment for global financial markets," said Dan Coatsworth, head of markets at AJ Bell. "Any disappointment could have fuelled concerns around an AI bubble poised to burst."

"Fortunately, Nvidia has brought the party back to life, with suggestions that everything is hunky dory with all things AI," he added. "Demand for its products remains strong, and chief executive Jensen Huang continues to talk up AI like it's the best thing since sliced bread."

The futures remained sharply higher after the Labor Department released a long-delayed report showing employment in the U.S. increased by much more than expected in the month of September.

The Labor Department said non-farm payroll employment jumped by 119,000 jobs in September after a revised dip of 4,000 jobs in August.

Economists had expected employment to rise by 50,000 jobs compared to the addition of 22,000 jobs originally reported for the previous month.

Meanwhile, the report said the unemployment rate crept up to 4.4 percent in September from 4.3 percent in August. The unemployment rate was expected to remain unchanged.

The stronger than expected jobs growth may help ease recent concerns about the strength of the economy but may also further decrease expectations of another interest rate cut at the Federal Reserve's next meeting in December.

After failing to sustain an early rally, stocks fluctuated over the course of the trading session on Wednesday before eventually ending the day mostly higher. The major averages all closed in positive territory after spending the day bouncing back and forth across the unchanged line.

The tech-heavy Nasdaq closed up 131.38 points or 0.6 percent at 22,564.23 but had surged by as much as 1.7 percent in early trading. The S&P 500 also rose 24.84 points or 0.4 percent to 6,642.16, while the narrower Dow inched up 47.03 points or 0.1 percent to 46,138.77.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Thursday. Japan's Nikkei 225 Index surged by 2.7 percent and South Korea's Kospi jumped by 1.9 percent, although China's Shanghai Composite Index bucked the uptrend and fell by 0.4 percent.

The major European markets have also moved to the upside on the day. While t he German DAX Index is up by 1.1 percent, the French CAC 40 Index is up by 0.9 percent and the U.K.'s FTSE 100 Index is up by 0.7 percent.

In commodities trading, crude oil futures are climbing $0.39 to $59.83 a barrel after plunging $1.30 to $59.44 a barrel on Wednesday. Meanwhile, after rising $16.30 to $4,082.80 an ounce in the previous session, gold futures are edging down $1.60 to $4,081.20 an ounce.

On the currency front, the U.S. dollar is trading at 157.63 yen versus the 157.15 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1523 compared to yesterday's $1.1536.