NVIDIA Earnings Rekindle Tech Rally; S&P 500 Snaps Four-Day Losing Streak

Market Overview

U.S. equities rebounded on Wednesday, led by a strong rally in mega-cap tech ahead of NVIDIAs earnings release. The Nasdaq outperformed as AI-related sentiment improved, while the S&P 500 ended its four-session slide. Google surged more than 6% intraday after unveiling its latest AI model.

NVIDIA later reported earnings after the bell, with shares jumping as much as 6% in after-hours trading, lifting Nasdaq 100 futures by nearly 1%. In contrast, cryptocurrency-linked equities faced heavy selling pressure throughout the session.

On the macro front, the absence of the latest FOMC minutes and October nonfarm payrolls dampened rate-cut expectations. Both the U.S. dollar and Treasury yields climbed, with the 10-year yield rising 2.5 bps. The U.S. Dollar Index gained 0.67%, decisively reclaiming the 100 handle, while USD/JPY surged more than 1%, returning to 157 for the first time in ten months.

Crypto markets experienced sharp volatility: Bitcoin briefly fell below the $90,000 mark before recovering, still ending the day down more than 2%. Ethereum slid as much as 8%, dipping below $2,900.

In commodities, spot gold managed a modest 0.25% rebound after briefly reclaiming $4,100. Crude oil tumbled more than 3% at one point following reports that the White House may reach a Russia-Ukraine peace framework this week.

Hot Topics to Watch● Bitcoin Slump Triggers Heavy ETF Outflows

BlackRocks IBIT recorded $523 million in outflows on Tuesday — its largest single-day redemption since launching in January 2024.

IBIT has now seen nearly $2 billion in net outflows in November, while U.S. spot Bitcoin ETFs collectively have posted over $3 billion in monthly redemptions so far.

● Japanese Bond Selloff Deepens

Wednesday‘s auction of Japan’s 20-year government bonds reflected mounting investor caution.

The bid-to-cover ratio fell to 3.28 from 3.56 in the prior month, signaling waning demand.

The selloff is being fueled by expectations that Prime Minister Sanae Takaichis administration may introduce a supplemental budget far larger than anticipated — one that likely requires a substantial increase in JGB issuance, raising concerns about supply-driven pressure in the bond market.

Key Events to Watch(GMT+8)

21:30 — U.S. Nonfarm Payrolls (NFP), Labor Force Participation Rate, Philadelphia Fed Manufacturing Index, Unemployment Rate

23:00 — U.S. Existing Home Sales (Annualized)