Nvidia’s Optimism Fades Fast as the S&P 500 Stages a Major Reversal

Market Overview

Nvidia‘s post-earnings optimism proved short-lived, offering little support to the broader market. U.S. equities saw a dramatic intraday reversal: the S&P 500 plunged more than 3% from its session high—its largest intraday pullback since April’s tariff-driven selloff—while the Nasdaq finished down more than 2%, with both indices hitting two-month lows.

Tech stocks led the decline. Nvidia reversed from a gain of more than 5% to a drop of over 3%, making it the biggest laggard among the “Magnificent Seven.” AMD tumbled nearly 8%, and Oracle slid more than 6%. Walmart was the rare outperformer, surging nearly 6.5% on strong results. Chinese ADRs were also hit, with Pinduoduo and Baidu both falling more than 4%.

On the macro side, U.S. Treasury prices rebounded following the release of delayed nonfarm payroll data, sending yields sharply lower—an acceleration that deepened once equities turned negative. The U.S. Dollar Index staged a roller-coaster move, hitting a two-week high before reversing lower. The Japanese yen weakened for a fourth straight day, touching a ten-month low.

Crypto markets saw a broad sell-off. Bitcoin plunged more than 7% at one point, breaking below the $87,000 level for the first time in seven months. In commodities, crude oil reversed into losses and hit a one-week low after Ukraine signaled willingness to join peace-talk frameworks. Gold also retreated, with futures dropping more than 1% intraday.

Hot Topics Ahead● U.S. Nonfarm Payrolls: 119,000 Jobs Added in September, Well Above Expectations

The U.S. Bureau of Labor Statistics released its delayed September NFP report on Thursday, showing conflicting signals in the labor market. Payrolls increased by 119,000—well above expectations—yet the unemployment rate rose to a four-year high of 4.4%. Meanwhile, job growth for the prior two months was sharply revised lower.

A surprise increase in labor-force participation contributed to the higher unemployment rate. Full-time employment rebounded, but industries such as manufacturing and transportation/logistics continued to shed jobs. Wage growth slowed on a month-over-month basis. Notably, both the October and November NFP reports will be released together on December 16, complicating the Feds policy outlook for year-end.

● Walmart Q3 Revenue Up 5.8% YoY

Walmart delivered solid Q3 results, with e-commerce remaining the standout driver of growth. Global online sales rose 27% across all business segments. In the U.S., e-commerce revenue jumped 28%, supported by increased store-fulfilled delivery orders, advertising growth, and third-party marketplace expansion. Internationally, online sales surged 26%, while Sams Club posted a 22% increase.

Key Events to Watch (GMT+8)

20:30 (US) — Remarks by John Williams, President of the New York Fed and permanent FOMC voter

21:30 (US) — Speech by Michael Barr, Federal Reserve Vice Chair for Supervision

22:45 (US) — Markit Manufacturing & Services PMI (November)

23:00 (US) — University of Michigan Inflation Expectations & Consumer Sentiment (November)

Overnight:

01:00 (US) — Atlanta Fed GDPNow Forecast for Q4