With around ninety minutes to go before the US close, Wednesday’s session has been anything but settled.
US stocks opened firmer, briefly looked ready to build on early strength, then cooled sharply as Europe wrapped up for the day. The tone across markets remains cautious as traders wait for Nvidia’s third-quarter earnings after the bell, a release that will dictate the next move in the AI trade and potentially the broader S&P 500 rally.
The stakes are high. Options pricing points to a swing of roughly seven per cent in either direction once the numbers land. Nvidia is widely expected to top consensus again, with analysts calling for strong sales and continued demand for AI chips and data-centre infrastructure. Yet the bar is higher than ever. After days of profit-taking across tech and renewed chatter about stretched valuations, the company needs more than another beat to calm nerves.
Wall Street has spent most of the day trying to steady itself after four straight declines. The S&P 500 clawed higher into the afternoon, helped by some rotation out of crowded AI names and into more defensive pockets. Investors appear split between those trimming positions ahead of the results and those betting that guidance will confirm the AI build-out still has room to run.
In London, the FTSE 100 slipped even as European stocks edged higher. Fresh UK inflation data showed price growth cooled in October, handing Chancellor Rachel Reeves a dose of good news before next week’s budget. The softer inflation print offered some relief but didn’t do much to lift broader sentiment, which remains dominated by global tech jitters.
This week has seen a clear return of anxiety around AI-linked valuations. The concern is simple, if Nvidia fails to deliver both a clean beat and confident guidance, the AI trade that has powered most of this year’s market strength could lose momentum. For now, traders are sitting tight, waiting for the number that will decide whether this hesitation turns into a pullback or another surge higher.
