S&P 500 and Nasdaq close with gains

The stock markets closed higher, bolstered by a strong quarterly report from Nvidia, whose shares surged by 5%. The company's confident forecast eased concerns about a potential bubble in the AI sector, providing support to the stocks of other AI companies, including Alphabet, whose shares also showed growth. The S&P 500 and Nasdaq 100 indices increased by 0.38% and 0.59%, respectively, with futures showing even more pronounced gains.

Positive dynamics were also reflected in Asian markets, with the Nikkei 225 gaining 2.5% and the South Korean Kospi up by 2.9%. Bitcoin rose to $92,000. Meanwhile, investors are cautiously assessing the prospects for a Federal Reserve interest rate cut and awaiting the upcoming jobs report, which could influence future market directions. Follow the link for more details.

Fed minutes reveal Committee's plan to hold interest rates steady until year-end

At the October meeting of the Federal Reserve, the leadership's opinions were divided: some feared that lowering rates could exacerbate inflationary pressures, while others considered the possibility of a gradual reduction closer to year-end. An increasing number of members advocate caution and maintaining the current policy until clearer data on the labor market and inflation is available.

After the release of the minutes, the probability of a rate cut in December plummeted from 65% to 30%, according to CME Group's FedWatch data. This indicates that investors view the Fed's stance as restrained and poised to avoid hasty actions. Against this backdrop, the dollar strengthened, and the USDX index started to recover from previous fluctuations. Follow the link for more details.

Nvidia confirms Q3 metrics, contributing to S&P 500 recovery

NVIDIA published an impressive quarterly report, halting the four-day decline in the US stock market and pushing the company's shares up by 6.5%. Despite a recent 12% drop from October highs, NVIDIA is showing strong results: its revenue reached $57 billion, and earnings per share stood at $1.3, all exceeding analysts' forecasts.

This financial success has heated discussions about the role of AI in technological development. Optimists believe that such results strengthen faith in the growth of the S&P 500 and the entire tech sector. However, skeptics point to rising costs and uncertainties regarding the effectiveness of investments in AI. Follow the link for more details.