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US stocks climbed on Wednesday, pausing a four-day slide as investors positioned themselves ahead of Nvidia’s highly anticipated quarterly results — a key event expected to influence the next phase of the AI-driven market rally.
The Nasdaq Composite led the rebound with a 0.6% gain, followed by the S&P 500, which added 0.4%. The Dow Jones Industrial Average ended just 0.1% higher, fluctuating around the flatline for most of the session due to its lighter exposure to mega-cap tech stocks.
The modest rise came after a stretch of tech-led declines that had pressured broader indices throughout the week.
Nvidia in Focus as AI Trade Faces Inflection Point
Nvidia shares rose nearly 2.8% before the company’s third-quarter earnings release, with options pricing indicating a potential 7% swing in either direction.
Markets widely view the results as a make-or-break moment for the year’s powerful AI-fuelled rally in the S&P 500.
Other major tech names remained under pressure:
Meta fell about 1.2%
Microsoft slipped 1.3%
Bitcoin also extended its decline, sliding below $90,000 — its weakest level since April — as risk appetite remained fragile.
Investors Parse Fed Signals Amid AI Spending Concerns
Fresh minutes from the Federal Reserve’s recent meeting revealed internal divisions over whether to cut rates in December, reinforcing uncertainty around the central bank’s next policy move.
Meanwhile, worries about Big Tech’s heavy AI-related spending continued to weigh on sentiment. Investors are increasingly cautious about companies such as Amazon, which may need to expand borrowing at a time when the Fed is signalling fewer rate cuts ahead.
A key catalyst arrives on Thursday with the release of the September US jobs report, the first major data update since the government shutdown disrupted scheduled economic releases. The October jobs report has been cancelled entirely, and November’s reading is now delayed until December 16.
Sector Moves: Tech Outflows Still Intensify
Tech stocks recorded the largest outflows of any sector last week — the fourth straight week of withdrawals — according to Bank of America.
Analysts say Nvidia’s earnings remain a critical sentiment indicator for the entire AI ecosystem.
“Nvidia earnings are effectively a quarterly pulse check for the AI trade,” said Jake Behan of Direxion.
Company Highlights
Block Surges on Profit Guidance
Block Inc. shares jumped 8% after the company forecast strong earnings growth through 2028. Management expects operating profit to rise 30% per year, reaching $4.6 billion, with EPS tracking similar gains. The stock is still down nearly 28% year-to-date.
Oil Drops on Inventory Data
Crude oil prices fell more than 2% after US government data showed a much larger-than-expected drawdown in crude inventories.
Brent dipped below $64
WTI hovered near $59.30
Analysts say markets are already pricing in a potential 2026 oversupply glut, even as some banks, including Goldman Sachs, expect prices to rise later in the decade.
