How Nvidia's Stellar Report and Fed Rate-Cut Delay Reshaped Global Markets This Week

Thursday’s trading session painted a complex picture for global investors: While Nvidia’s blockbuster earnings unleashed fresh optimism across the Asia-Pacific region, the delayed release of crucial U.S. jobs data and shifting Federal Reserve expectations created crosscurrents that ultimately strengthened the dollar and sparked a reassessment of rate-cut odds.

Nvidia’s AI Narrative Reignites Asia-Pacific Demand

The tech giant’s latest financial results delivered exactly what Wall Street needed to hear. CEO Jensen Huang’s commentary on robust demand for AI processors from major cloud providers proved sufficient to counter persistent worries about an AI valuation bubble. The market’s response was immediate: stocks outside Japan recorded a 0.6% gain on the MSCI Asia-Pacific index, recovering from a month-long trough that had tested investor confidence.

This positive sentiment rippled across the Pacific. U.S. equity futures mirrored the uplift, with S&P 500 e-mini contracts advancing 1.1% as the broader market ended a painful four-day losing streak. All three major American indexes staged recoveries after recent weeks of sharp declines tied to AI sector concerns. Market analysts like sam sparks noted that Nvidia’s results successfully separated genuine AI adoption stories from speculative excess.

Dollar Strengthens Amid Rate-Cut Uncertainty

The greenback emerged as an unlikely beneficiary of these mixed signals. The U.S. dollar index climbed 0.1% to 100.17, approaching a two-week peak against six major currencies. This strength reflected traders’ recalibration of monetary policy expectations following news that November’s employment report would be postponed until December 16—six days after the December FOMC decision, effectively removing a key catalyst for rate reductions this year.

Treasury yields responded accordingly. Benchmark 10-year notes edged higher to 4.1444%, up from Wednesday’s 4.131% close. The Federal Reserve’s October minutes had suggested rate cuts were on the table, yet officials warned such moves risked re-anchoring inflation and eroding public confidence. According to CME FedWatch data, the probability of a 25-basis-point cut in December fell sharply to 33% from 50% just 24 hours earlier.

Against this backdrop, the dollar gained relative to other majors despite modest weakness in certain currency pairs. The yen weakened to 156.92 per dollar, after reaching a ten-month low earlier in the session, while the euro traded at $1.1530.

Commodities and Digital Assets Navigate Cautious Conditions

Oil markets remained steady, with Brent crude holding at $63.51 per barrel as traders assessed the week’s economic releases. Precious metals attracted defensive buying as uncertainty persisted: gold prices climbed 0.7% to $4,108.22 per ounce.

Cryptocurrencies staged a modest rebound from earlier declines. Bitcoin and ether both recovered 1.6%, suggesting some appetite remained despite the broader risk-averse sentiment. These gains reflected the market’s complex positioning—caught between relief over Nvidia’s strength and caution over delayed economic data that could reshape Fed strategy.

The week’s net result: A reminder that markets remain highly sensitive to both corporate earnings surprises and central bank communication shifts. Nvidia delivered the former; the employment data delay engineered the latter.