Nvidia surges after market. Nikkei makes a new all time high

S&P 500 futures surged in overnight trading, fueled by Nvidia’s remarkable earnings report. The tech giant announced a record 265% year-on-year revenue growth, attributed to its thriving AI sector, propelling its shares up by 9% in after-hours trading. This performance has significantly elevated Nvidia’s market standing, making it the fifth-largest U.S. company. With the firm projecting continued revenue growth, this momentum is likely to invigorate the broader market, especially within the tech sector. S&P 500 futures increased by 0.7%, Nasdaq 100 futures rose over 1%, and Dow Jones Industrial Average futures saw a modest gain of 42 points, or 0.1%.

The Nikkei 225 index soared to a new peak, reaching 38,924.88 and eclipsing its 1989 record, as strong corporate earnings and proactive investor engagement propelled Japanese stocks to remarkable heights. Recording over a 10% increase this year, following a more than 25% surge in 2023, both the Nikkei and the broader Topix index have significantly outperformed their Asia Pacific counterparts. With robust third-quarter earnings, Bank of America strategists have revised their year-end Nikkei 225 forecast to 41,000 and the Topix to 2,850, further buoyed by the yen’s depreciation, which is nearing a 33-year low against the dollar.