US Session: The U.S. Markets are Expected to Open in the Green as Bubble Concerns Fade

Top 5 Key Things Investors Need to Know Before the U.S. Market Opens

1. No Bubble, No Problem?

Nvidia beat Wall Street expectations on both revenue and earnings for the third quarter and also issued a stronger-than-expected outlook for the current period. Judging by the reaction in futures markets, the results convinced investors that concerns about the state of the AI rally can be pushed into the background.

What to know:

• Quarterly revenue exceeded $57 billion, and the company expects about $65 billion in sales for the next quarter.
• CEO Jensen Huang described Blackwell chip sales as “off the charts.”
• He dismissed concerns about an AI bubble, saying the company sees “something entirely different.”
• The comments matter because Nvidia is at the center of the AI boom — its clients include Amazon, Microsoft, Google, Oracle, and nearly all major AI developers.
• Although Nvidia announced two months ago plans to invest $100 billion in OpenAI, the company said there is “no guarantee” of a final agreement.
• Nvidia shares jumped 5% in premarket trading, fueling a broader rebound in futures this morning.
• AMD, Broadcom, and infrastructure companies like Eaton also rose.

2. Walmart’s Win

Walmart beat analysts’ expectations and raised its guidance for a second consecutive quarter — thanks to strong e-commerce growth and an influx of new customers.

CFO John David Rainey told CNBC that Walmart attracted “value-seeking” customers across income groups. The company did feel the impact of the temporary pause of the SNAP program during the government shutdown, but Rainey said there is now a “recovery” as payments resume.

CNBC reported yesterday that Walmart is in talks to acquire Israeli startup R&A Data, which monitors online marketplaces for fraud and counterfeits. Two months ago, an investigation found that Walmart had loosened its vetting standards for online sellers to remain competitive with Amazon.

3. Fed Divisions

Minutes from the latest Federal Reserve meeting showed that members were divided on whether another rate cut should be made. The document dampened hopes for an additional December cut — “many” members believe further reductions this year are not necessary.

Meanwhile, President Trump once again attacked Chair Jerome Powell, saying: “I’d like to fire him.” He reportedly urged Treasury Secretary Scott Bessent to “work on getting Powell to cut rates.”

We are awaiting the release of the September employment report, which was delayed due to the government shutdown. Yesterday, the Bureau of Labor Statistics said that October’s nonfarm payroll data will not include the unemployment rate because the information was not collected during the shutdown.

4. The ‘Epstein’ Bill

President Donald Trump announced that he signed a law requiring the release of files related to sex offender Jeffrey Epstein. The law gives Attorney General Pam Bondi 30 days to publish unclassified records linked to Epstein and Ghislaine Maxwell.

Exceptions include information identifying victims, materials involving child sexual abuse, and records that could interfere with ongoing investigations.

5. The American Dream

Homebuyers are experiencing the strongest housing market in over a decade, according to a Redfin report. But there’s a catch: you need to be able to afford a home.

The company reports that last month there were 36% more sellers than buyers — the biggest gap since 2013. But analysts note that many Americans are being “pushed out” of the market due to collapsing affordability.

“It’s a buyer’s market only for those who can actually afford to buy,” the researchers wrote.

New data shows mortgage rates have risen for a third straight week, leading to lower demand from both current and potential buyers.

Futures rose on Thursday as investors digested the latest Nvidia results, which restored confidence in big tech and lifted the broader market.

Dow Jones Industrial Average futures were up 373 points, or 0.8%. S&P 500 futures gained 1.5%, while Nasdaq 100 futures climbed 2%.

Nvidia shares rose 5% after the company reported better-than-expected revenue and earnings. The next-quarter outlook also topped expectations. CEO Jensen Huang said demand for Blackwell chips is “extraordinarily high” and dismissed AI bubble concerns.

Nvidia’s strong guidance boosted sentiment around the AI sector, which had weakened in recent sessions amid worries about lofty valuations, debt-funded spending, and potential chip depreciation. The results lifted other AI ecosystem players such as AMD, Broadcom, and infrastructure suppliers like Eaton.

Stocks also found support from a better-than-expected jobs report. The data showed the economy adding 119,000 jobs in September, above forecasts. Although the release was delayed due to the shutdown, investors are looking past the outdated timing.

In the previous session, all three major indexes rose, snapping a four-day losing streak for the S&P 500 and Dow. However, the market remains down for the week due to a deeper correction in growth stocks.

Minutes from the Federal Reserve’s October meeting, released Wednesday, showed disagreements over whether the bigger risk now comes from a weakening labor market or inflation. This division is reflected in expectations for the December decision, with “many” members not supporting further cuts this year. Markets are pricing in just a 33% chance of a 25 bps December cut — a sharp drop from expectations a month ago, according to CME FedWatch.