Wall Street edges higher as Nvidia boost fades; policy uncertainty caps gains

U.S. stocks rose Thursday but closed well off intraday highs as an early, Nvidia-led rally lost steam and investors weighed mixed signals on the Federal Reserve’s next move.

By 11:26 a.m. ET, the Dow Jones Industrial Average was up 0.66% at 46,441.56, the S&P 500 gained 0.86% to 6,699.33, and the Nasdaq Composite added 1.07% to 22,806.11. All 11 S&P 500 sectors traded higher, led by technology. The Philadelphia Semiconductor Index rose 0.9%, with chip names including Advanced Micro Devices and Broadcom advancing.

Nvidia climbed 1.9% after guiding fourth-quarter sales above estimates and topping third-quarter revenue forecasts. While CEO Jensen Huang downplayed fears of an AI slowdown, some investors questioned how long the market can depend on successive blockbuster quarters. As AJ Bell’s Dan Coatsworth put it, Nvidia’s fundamentals are “ultra-marathon strong,” but the market will again “wait with bated breath” in three months.

Despite Thursday’s rebound, enthusiasm around high-multiple tech has cooled in recent weeks amid worries about AI monetization, circular spending, and elevated leverage. The Nasdaq remains well below its October peak, and Nvidia is down nearly 9% from its high.

Single-stock movers
• Tesla led megacap gains as growth stocks outperformed value; the S&P 500 Growth Index rose 1.1%.
• Walmart jumped 6.7% after lifting full-year guidance and setting a December move to list on Nasdaq.
• Palo Alto Networks fell 4.4% after agreeing to acquire Chronosphere for $3.35 billion.

Macro and Fed watch
September nonfarm payrolls accelerated, but the unemployment rate rose to 4.4%, a combination that kept the policy outlook murky. Jobless claims fell last week, suggesting some resilience. With October’s report skipped due to the government shutdown, Thursday’s release was the final labor snapshot before the Fed’s December 10–11 meeting.

Positioning implies the Fed is more likely to hold rates in December, though probabilities eased modestly after the jobs data. Jason Pride of Glenmede said the meeting is shaping up as a clash between “hawks focused on inflation risks and doves focused on labor market softness,” adding that the latest report “reduces the urgency” for another cut but doesn’t end the cycle.

Market breadth was constructive: advancers led decliners roughly 2.4-to-1 on the NYSE and 2.2-to-1 on the Nasdaq. The S&P 500 recorded 12 new 52-week highs versus four lows; the Nasdaq posted 66 highs and 109 lows.

What’s next
Attention turns to the sustainability of AI capex in corporate guidance, semiconductor order trends, and upcoming macro releases for confirmation that growth is slowing without tipping into recession—conditions that would bolster the case for gradual policy easing in early 2026. For now, earnings quality and guidance precision are likely to drive near-term leadership more than multiple expansion.