Technology Shares Surge, Lift Global Equity Sentiments

Nvidia’s quarterly results exceeded expectations, with upbeat guidance sparking a mega-cap tech rally that eased AI bubble fears. The strong performance catalysed a broader market rebound, ending the S&P 500’s four-session decline.

CEO Jensen Huang dismissed concerns about an AI bubble as the company posted accelerating growth after several quarters of deceleration. The stellar Q3 earnings and Q4 forecast temporarily calmed investor anxiety over whether AI infrastructure investments have created a bubble.

Shares jumped 5% in extended trading, adding $220 billion in market value. The results reversed November’s nearly 8% decline, following a 1,200% surge over three years.

Nvidia’s performance drove Wednesday’s rally in major indexes, restoring momentum to tech stocks after recent volatility and valuation scepticism.

S&P 500 futures rose 1%, signalling a strong US market opening on Thursday.

Most FOMC members agreed rates should eventually decline, though several indicated a December 25-basis-point cut is unlikely.

Bitcoin briefly dropped below $90,000—its lowest since April—amid BlackRock ETF outflows and shrinking liquidity. Crypto stocks declined sharply, though miners began accumulating despite bearish sentiment.

Oil prices fell, with WTI near $59 and Brent around $64, after larger-than-expected U.S. inventory builds and IEA surplus projections. Diplomatic progress in the Russia-Ukraine conflict and potential resumption of Russian port operations further reduced supply concerns.

Gold held above $4,070/oz, supported by equity volatility and cautious Fed signals. Safe-haven flows increased as investors weighed elevated tech valuations and interest rate uncertainty.

Nifty resumed its uptrend by rising 142 points to close at 26052 yesterday. Nifty is now approaching the critical resistance at 26,100; a decisive breakout above this level could pave the way for fresh all-time highs and push it past 26,277.

On the downside, the low of 25,856 now serves as immediate support, with the next key level to watch at 24,740.

Indian markets are likely to open higher on strong global cues.