"Nvidia stock was down 2.59% yesterday, and it's now down 7% for the month. The negativity continued this morning: the company's shares were down a further 1.34% overnight, mostly on news that Meta was considering using Google's chips to power its AI models. Normally, given the excess valuations that the Magnificent 7 tech companies carry, this would be a disaster for stocks. But this morning, traders are ignoring Nvidia and a global rally in stocks is underway."
"S&P 500 futures were up 0.29% this morning, premarket, after the index closed up 0.91% yesterday. Markets in Asia and Europe were up across the board. Perhaps most interestingly, tech stocks that aren't Nvidia are also holding their own-the Nasdaq Composite was up 0.58% yesterday. Jim Reid and his team at Deutsche Bank described the buoyant mood like this: "The 3-day advance for the S&P since Thursday's low stands at +3.47%, which is the strongest 3-day move since the U.S.-China tariff reduction back in May and leaves the index less than 2% from its all-time high. The U.S. equity advance was broad-based, with the small cap Russell 2000 up +2.14% and the equal-weighted S&P 500 up +1.45% on the day.""
"Why the good cheer? Five main factors: First, companies in the S&P are actually doing quite well. With 95% of them having reported Q3 results, "earnings per share (EPS) growth is tracking over 13% ... cruising past the 7.4% consensus forecast," according to LPL Financial analysts Jeffrey Buchbinder, Adam Turnquist, and Brian Booe. "S&P 500 revenue grew 8.4%, an atypically strong 2.5% above expectations at quarter-end.""
Nvidia's shares fell sharply—down 2.59% yesterday and 7% for the month, plus 1.34% overnight amid reports Meta may use Google's AI chips—yet global equities rallied. S&P 500 futures rose 0.29% premarket after the index gained 0.91% the previous day, while markets in Asia and Europe climbed and the Nasdaq Composite also advanced. The S&P posted its strongest three-day advance since a U.S.-China tariff reduction, with small caps and the equal-weighted S&P notably higher. Corporate results have surprised on the upside: 95% of S&P firms reported, EPS tracking over 13% and revenue growing 8.4%.
Read at Fortune
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