Stocks Climb as Traders Look to Nvidia for AI News: Markets Wrap
(Bloomberg) — Wall Street traders bracing for Nvidia Corp.’s results drove stocks higher, hoping for evidence that the outlook for artificial intelligence remains intact. Bitcoin topped $69,000. A rally in bonds stalled.
The tech-heavy Nasdaq 100 rose 1.3%. More than solid results and forecasts, Nvidia will need to manage expectations around the sustainability of margins amid an AI spending frenzy and disruption jitters. The chipmaker, whose shares have languished since October, climbed 2%.
“It’s widely assumed that the results will be strong, but will they be strong enough?” said Bespoke Investment Group strategists. “And if they’re too strong, will that also be interpreted as further future disruption in the software space?”
The options market is pricing in about a 5% swing in either direction for Nvidia the day after earnings. The stock has fallen in each session that followed its last two reports.
“A solid beat, and more importantly, strong guidance, will reaffirm the AI narrative,” said veteran strategist Louis Navellier. “Any sign of cautiousness could bring some meaningful volatility.”
President Donald Trump is convening tech executives from firms including Amazon.com Inc., Meta Platforms Inc., Microsoft Corp. and Alphabet Inc. at the White House next week to sign pledges committing their companies to foot the electricity bill for energy-hungry data centers.
The S&P 500 added 0.8%. An ETF tracking software firms jumped 3%. Salesforce Inc. is also expected to address AI fears when it reports results later Wednesday.
The yield on 10-year Treasuries rose one basis point to 4.04%. The dollar fell 0.2%.
Nvidia to Give Update on AI Industry With Results: Preview
“Nvidia’s AI castle is no longer considered impenetrable because of its deep and wide moat,” said Hardika Singh at Fundstrat Global Advisors. “Earnings from the chip darling will show what kind of defenses it’s putting up against the horde of determined, well-equipped besiegers.”
Investors have been so sensitive that a report from a little known firm called Citrini Research outlining the potential AI risks to various industries — using hypothetical scenarios set in the future — jolted markets earlier this week.
“All eyes are on Nvidia as its earnings may shape the next move in megacap leadership,” said Mark Hackett at Nationwide. “We’re currently seeing a healthy market churn, but once it runs its course, we can expect the balance of power to still rest firmly with the bulls.”
Wolfe Research conducted a poll that suggests most investors bet the AI “wrecking ball” that’s roiled markets is largely “overblown,” said Chris Senyek. However, participants viewed the “broadening out” trade as alive.
Recent price action tied to AI disruption risk presents opportunities in well-positioned incumbents and AI adopters with pricing power, according to Morgan Stanley strategists including Andrew Pauker.
The strategists also noted that an analysis of over 10,000 earnings and conference transcripts shows a steady increase in the share of companies seeing quantifiable benefits from AI adoption.
Corporate Highlights:
Warner Bros. Discovery Inc. said Paramount Skydance Corp.’s new $31-a-share buyout offer could lead to a better deal than its existing agreement with Netflix Inc. Circle Internet Group Inc. said strong demand for its stablecoin bolstered profit and revenue during the fourth-quarter downturn in digital assets. Lowe’s Cos. forecast sales guidance for the full year that fell short of expectations, a sign the housing market will remain lackluster in the near term. First Solar Inc. issued a 2026 sales forecast below analysts’ estimates. What Bloomberg Strategists say…
“Nvidia enters Wednesday’s earnings report with powerful tailwinds at its back. A strong print is poised to calm the AI anxiety and set the stage for a recovery in technology stocks.”
—Tatiana Darie, Macro Strategist, Markets Live. For the full analysis, click here.
Some of the main moves in markets:
Stocks
The S&P 500 rose 0.8% as of 2 p.m. New York time The Nasdaq 100 rose 1.3% The Dow Jones Industrial Average rose 0.6% The MSCI World Index rose 0.8% Currencies
The Bloomberg Dollar Spot Index fell 0.2% The euro rose 0.3% to $1.1806 The British pound rose 0.5% to $1.3552 The Japanese yen fell 0.3% to 156.34 per dollar Cryptocurrencies
Bitcoin rose 8.3% to $69,372.02 Ether rose 12% to $2,075.13 Bonds
The yield on 10-year Treasuries advanced one basis point to 4.04% Germany’s 10-year yield was little changed at 2.71% Britain’s 10-year yield advanced one basis point to 4.32% Commodities
West Texas Intermediate crude was little changed Spot gold rose 1.1% to $5,202.60 an ounce ©2026 Bloomberg L.P.
