Daily Summary: Market attempts recovery, all hope in Nvidia

Market Correction Ahead of Nvidia Earnings

The American stock market is seeking to recover from recent declines as investors await Nvidia's NVIDIA Corporation earnings report. Although the day started with upward momentum, gains quickly faded, reflecting ongoing investor caution and volatility.

Status of Major Indices and Stocks

All three primary US indices advanced, led by a 0.6% lift in the Nasdaq composite. The S&P 500 S&P 500 and Dow Jones also broke their four-day losing streaks, though market enthusiasm was tentative.
Before Nvidia's announcement, the company’s shares had dropped 11% from earlier monthly highs, intensifying focus on the upcoming results and their potential to shape broader market trends.

Key Developments

European technology and defense equities experienced notable sell-offs, contrasting with a cautious stance in the American session.
Latest economic indicators suggested nuanced optimism: the UoM report signaled a decrease in inflation expectations, and the US PMI modestly exceeded forecasts, though the EURUSD exchange rate showed little reaction.

Nvidia’s Latest Financial Results

With anticipation high, Nvidia delivered robust earnings, surpassing Wall Street’s estimates for both revenue and profit, and providing strong forward guidance.

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“There’s been a lot of talk about an AI bubble. From our vantage point, we see something very different. As a reminder, Nvidia is unlike any other accelerator. We excel at every phase of AI from pre-training to post-training to inference.” — Jensen Huang, CEO, Nvidia

After the release, Nvidia’s stock jumped by over 5% in after-hours trading, adding more than $225 billion to its market value. The company reported a record $57 billion in Q3 revenue—a 62% increase year-over-year—and forecasts $65 billion for the next quarter, comfortably ahead of estimates.

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Market Influence and Reactions

Nvidia's gains buoyed share prices of related tech firms, and the company’s substantial weight in the S&P 500 underscores its market-wide impact.
Still, analysts and prominent shareholders remain vigilant for signs of an overheated AI sector, as recent momentum has slowed and some institutional investors have trimmed exposure.

Market Context and Regulatory Note

This market commentary was prepared by XTB S.A., headquartered in Warsaw, Poland, and subject to oversight by the Polish Supervision Authority. The information is provided as a marketing communication as defined by Article 24 (3) of Directive 2014/65/EU (MiFID II).

The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority (No.). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II).

Author’s Summary

Despite market turbulence, Nvidia’s strong financials and future outlook have become a crucial reference point for investors navigating current volatility and the ongoing AI-driven tech rally.

XTB.com — 2025-11-20