[New York Stock Exchange] Rises Ahead of Nvidia Earnings... Alphabet and Nvidia Up 2.8% Each

Nvidia to Announce August?October Earnings After Market Close
Focus on Whether AI Bubble Concerns Will Be Eased
Alphabet Hits All-Time High on Optimism Over 'Gemini 3'
FOMC Minutes: "Majority of Members Advocate Rate Pause in December"

On November 19 (local time), all three major indices on the New York Stock Exchange closed higher. Ahead of the scheduled earnings announcement by Nvidia, bargain buying flowed in, breaking the recent downward trend that had been fueled by concerns over an overheated artificial intelligence (AI) investment market. The increased likelihood of a rate freeze in December did not affect the market's upward momentum. Alphabet, Google’s parent company, rose by about 3%, reaching a new all-time high.

On the 19th (local time), traders are working on the trading floor of the New York Stock Exchange (NYSE) in the United States. Photo by Reuters Yonhap News

On this day, the Dow Jones Industrial Average, which focuses on blue-chip stocks, closed at 46,138.77, up 47.03 points (0.1%) from the previous trading day. The S&P 500 Index, centered on large-cap stocks, rose by 24.84 points (0.38%) to 6,642.16, while the tech-heavy Nasdaq Index climbed 131.383 points (0.59%) to finish at 22,564.229. The S&P 500 Index, which had declined for four consecutive sessions and recorded its longest losing streak since August, succeeded in rebounding on this day.

By stock, Alphabet hit a new all-time high, closing at $292.99 per share, up 2.82% from the previous day. Optimism over the newly unveiled next-generation AI, "Gemini 3," boosted the share price. Nvidia also rose 2.85% ahead of its fiscal third-quarter (August to October) earnings announcement. Financial information provider LSEG estimated that Nvidia's revenue for this period would reach $54.92 billion, a 56% surge compared to the same period last year. Wall Street expressed expectations that the rapid revenue growth would continue, driven by strong demand for AI chips and infrastructure. Oracle gained 2.29%. U.S. retailer Target fell 2.79% after reporting a decline in third-quarter revenue and lowering the upper end of its annual profit outlook.

David Trainer, founder and CEO of New Constructs, commented, "The decline in the stock market in November can be seen as the market taking a breather and viewing the world more realistically," adding, "Nvidia's earnings announcement is a key indicator for AI trading and is especially important for the broader market at a time when investors are concerned about an AI bubble."

Recently, the market has seen active buying amid AI optimism, but concerns are growing over massive capital expenditures and the pace of monetization.

Chris Senyek, Chief Investment Strategist at Wolfe Research, said, "Concerns about an AI bubble bursting are, at least for now, exaggerated. Even if the U.S. economy faces a slowdown in economic indicators, technology and communication services companies are well positioned to weather a temporary storm." He added, "We are maintaining our buying positions in AI-related stocks despite the weak market. We plan to take a more aggressive buying approach if Nvidia delivers a positive surprise or if technical indicators show further weakness."

In the afternoon, the minutes of the Federal Open Market Committee (FOMC) meeting from October were also released. The minutes stated, "Many participants suggested that, depending on the economic outlook, it would be appropriate to leave the target range for the federal funds rate unchanged for the remainder of the year," confirming that most members hold a negative view on a rate cut in December.

Accordingly, the market has significantly lowered its expectations for a rate cut in December. According to CME FedWatch, the market is now pricing in a 66.2% probability that the Federal Reserve will keep the current benchmark interest rate of 3.75-4.0% unchanged at the December FOMC meeting, up sharply from 49.9% the previous day.

On the following day, November 20, the nonfarm payroll report for September will be released. The announcement of the September and October employment reports had been delayed due to the federal government shutdown, which began on October 1 and lasted a record 43 days. However, with the shutdown ending on November 12, previously unreleased inflation and employment indicators are now scheduled to be released sequentially. However, the October employment report is expected to omit the unemployment rate indicator due to disruptions in data collection.

U.S. Treasury yields are moving sideways. The 10-year U.S. Treasury yield, the global benchmark for bond yields, rose by 1 basis point (1bp = 0.01 percentage point) from the previous day to 4.13%, while the 2-year U.S. Treasury yield, which is sensitive to monetary policy, remained unchanged at 3.58%.